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Govt relaxes FDI norms in airlines, retail, construction

Press Trust of India  |  New Delhi 

The today relaxed norms in various sectors such as single and allowed foreign airlines to invest up to 49 per cent in Air The decision was taken during the Cabinet meeting chaired by Modi here. The Cabinet allowed overseas investors to invest 100 per cent (foreign direct investment) in single trading and construction development without any approval, an official statement said. "Foreign airlines allowed to invest up to 49 per cent under approval route in Air India," the statement said. As per the policy, foreign airlines are allowed to invest under approval route in Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 per cent of their paid-up capital. However, the provision was not applicable to Air India, thereby implying that foreign airlines could not invest in Air "It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India," it added. This condition was relaxed subject to certain conditions. The statement said that foreign investment in including that of foreign (s) shall not exceed 49 per cent either directly or indirectly and "substantial ownership and effective control of shall continue to be vested in Indian National". The said that the decision would help provide ease of doing business and also lead to larger inflows contributing to growth of investment, income and employment. Further it has clarified that real-estate broking service does not amount to business and is therefore, eligible for 100 per cent under automatic route. The cabinet also decided to allow FIIs/FPIs to invest in power exchanges through primary market as well. So far 49 per cent was permitted under automatic route in power exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010.

However, FII/FPI purchases were restricted to secondary market only.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 10 2018. 13:40 IST
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