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Govt. notifies 100% FDI in Air India for NRIs
Why is it in news?
- Union Government has notified changes in foreign direct investment (FDI) rules which permit non-resident Indians (NRIs) to acquire upto 100% in Air India.
- The amendment in FDI policy will permit FDI in Air India Ltd at par with other Scheduled Airline Operators.
Details:
- The Notification: Foreign investments in Air India, including that of foreign airlines shall not exceed 49% either directly or indirectly except in case of those NRIs, who are Indian nationals, where foreign investments is permitted up to 100% under automatic route.
- Previously, NRIs could own up to 49% in the carrier.
- India allows upto 49% FDI under the automatic route, government route beyond that and up to 100% for NRIs in scheduled air transport service/ domestic scheduled passenger airline, and regional air transport service.
- Substantial ownership and effective control of M/s Air India Limited shall continue to be vested in Indian Nationals as stipulated in Aircraft Rules, 1937.