The Union Cabinet on Wednesday Jan 10,2018 eased foreign direct investment (FDI)
norms in various sectors, including Civil Aviation, allowing foreign
airlines to invest up to 49 per cent under government approval route in
Air India.
“These are intended to liberalise and simplify the FDI policy so as to provide ease of doing business in the country. In turn, it will lead to larger FDI inflows contributing to growth of investment, income and employment,” a government press release stated
Though the earlier policy allowed foreign airlines to invest under government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, Air India was not included in this scheme. “It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49% under approval route in Air India,” the press release said.
However, the NDA Government has imposed two conditions. First, the investment by foreign airline should not exceed 49 per cent either directly or indirectly. Second, the substantial ownership and effective control of Air India will also continue to be vested in Indian National.
“These are intended to liberalise and simplify the FDI policy so as to provide ease of doing business in the country. In turn, it will lead to larger FDI inflows contributing to growth of investment, income and employment,” a government press release stated
Though the earlier policy allowed foreign airlines to invest under government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, Air India was not included in this scheme. “It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49% under approval route in Air India,” the press release said.
However, the NDA Government has imposed two conditions. First, the investment by foreign airline should not exceed 49 per cent either directly or indirectly. Second, the substantial ownership and effective control of Air India will also continue to be vested in Indian National.
The
Union Cabinet today approved changes in Foreign Direct Investment (FDI)
norms to allow foreign carriers to own 49 per cent in Air India under
approval route, a change that will allow foreign carriers to bid for the
national carrier but with an Indian partner.
The earlier FDI policy allowed foreign carriers to own 49 per cent in Indian carriers, but had kept Air India out of it, which has been amended by the Cabinet now.
"Foreign investment(s) in Air India incl ..
The earlier FDI policy allowed foreign carriers to own 49 per cent in Indian carriers, but had kept Air India out of it, which has been amended by the Cabinet now.
"Foreign investment(s) in Air India incl ..
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