Kathmandu, June 26 -- The Ministry of Culture, Tourism and Civil Aviation has proposed allowing up to 90 percent foreign direct investment (FDI) in international airlines seeking to operate in Nepal, according to a preliminary draft of the new Civil Aviation Policy released on Tuesday.

The draft, published on the ministry's website for public consultation, also recommends maintaining domestic airlines' current 49 percent FDI ceiling. However, it proposes allowing up to 95 percent foreign investment in aircraft manufacturing and design companies and 80 percent in other aviation service providers.

Once enacted, the new policy will replace the existing Civil Aviation Policy that has been in place since 2006.

A tourism ministry official sa...