Govt permits NRIs to own up to 100% stake in Air India
New Delhi: The government on Wednesday permitted NRIs to control up to 100 per cent stake in disinvestment-bound Air India.
The decision comes at a time when the government has sought preliminary bids for 100 per cent stake sale in the national carrier.
The decision was taken in a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi.
However, foreign investments in the national carrier including that of foreign airlines shall not exceed 49 per cent, either directly or indirectly, an official statement said.
It said that the condition that substantial ownership and effective control of Air India shall continue to be vested in Indian nationals.
Although 100 per cent FDI is permitted under automatic route for NRIs in scheduled air transport service/domestic scheduled passenger airline, it is restricted to be only 49 per cent in Air India, the statement said.
The national carrier will have no residual government ownership and will be completely privately owned.