Look up caelum investments in Virginia, they are 48 percent holders of indigo. Your correct I am not up to speed on the inner workings of FDI in India, but find it odd that the dgca is working on a plan (maybe) for FDI for the public companies and not for a private indigo. It most likely deals with shareholders and their expectations and voting rights and rights as holders of company stock.
Delhi is one of the only places in india with proper radar. Ground delays are only half the battle, pilots sequence themselves sometimes between three different control facilities at the same time, due to lack of coordination and infrastructure. There are excellent atc models available which don't need reinvented, but will be because of that ego you speak of.
It's not that feeder aircraft are a bad idea, it's the fact that the government shouldn't be requiring private companies to do it. They should stay out of ticket pricing and operations period. If they want to connect the villages and keep ticket prices low for the commen man, they run air India, go crazy, let the private companies die or survive on there own without the government pushing the knife in deeper.
I think we generally agree, I just see more government culpability than you. As an expat I dealt and saw the bs red tape and lost revenue for the airlines and there was nothing the airline could do to fix it. I have witnessed a pretty well run aviation industry from a government stand point as well as India's, so I may see more of the lost revenue. I can't tell you one properly managed airline on the other hand. It's a horribly money, infrastructure, labor intensive industry that grows itself into losses. As you said, how can you possibly make money selling tickets for 1 rs or even 200 usd? They just canabalize themselves and whoever has the most cash at the end wins.