Cabinet gives nod for FDI Policy on Civil Aviation
- Posted By
10Pointer
- Categories
Polity & Governance
- Published
6th Mar, 2020
-
- The Cabinet approved Foreign Direct Investment, FDI policy on civil aviation. The FDI policy was amended to permit foreign investment in Air India.
- Non Resident Indians can acquire up to 100 per cent equity in Air India under automatic route.
- Earlier only 49 per cent were available for sale to NRIs but now they can purchase 100 per cent.
- There is no change in the limit for overseas investors in the national carrier, including foreign airlines, which remains at 49%, directly or indirectly.
- Substantial ownership and effective control (SOEC) of Air India will have to remain in the hands of Indian nationals after the divestment.
- The change brings Air India in line with investment rules for other airlines, in which 100% FDI is permitted under the automatic route for NRIs.
- As per the present FDI policy, 100 per cent FDI is permitted in scheduled air transport service and domestic scheduled passenger airline (automatic up to 49 per cent and government route beyond 49 per cent).
- However for NRIs, 100 per cent FDI is permitted under automatic route in scheduled air transport service and domestic scheduled passenger airline.
