AGENCIES, New Delhi: The Union Cabinet on Wednesday approved 100 per cent Foreign Direct Investment (FDI) in Air India, which is bound for disinvestment soon. As a result, Non Resident Indians (NRIs) who are Indian nationals to own up to 100% stake of this prized asset.
The Cabinet’s decision of clearing any possible hurdle in privatisation of Air India was announced by Union Information and Broadcasting Minister Prakash Javadekar at a press conference.
Javadekar said that the Cabinet, at a meeting chaired by Prime Minister Narendra Modi, had decided to increase the maximum stake for NRIs from 49 per cent to 100 per cent. The government is in the process of selling the national carrier, having invited preliminary bids recently.
The next step that will happen is that the existing FDI (foreign direct investment) policy would be amended to allow NRIs to own up to 100% of Air India “under automatic route”.
The amendment was meant to “liberalise and simplify the FDI policy to provide ease of doing business in the country”, the government statement said.
Meanwhile, Air India Assets Holdings Ltd on Monday raised Rs 7k cr through bonds issue.