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CPI(M) against allowing foreign players to own 49% stake in AI

Press Trust of India  |  New Delhi 

The CPI(M) today accused the of moving towards handing over to foreign hands by allowing airlines from outside the country to own up to 49 per cent stake in the national carrier.

In big bang reforms ahead of the budget, the today allowed foreign airlines to invest up to 49 per cent in debt-ridden and also eased norms for investment in single-brand retail, construction and power exchanges.

In a statement issued after the Cabinet decisions, the party said, "The politburo of the CPI(M) also strongly opposes the decision to allow foreign airlines to invest up to 49 per cent in "

"Having taken the decision to privatise Air India, the is now moving towards handing over Air India to a foreign "

advised the government heed suggestions of the Parliamentary Standing Committee on Transport, Tourism and Culture that asked it to review its decision on privatisation of Air India and provide five years to revive the with its debt written off.

The CPI(M) also criticised the decision of the Cabinet to allow 100 per cent Foreign Direct Investment (FDI) through the automatic route in single-brand trade.

The party said that though "up to 49 per cent was permitted under the automatic route (till now), this decision to liberalise in trade will have harmful consequences for domestic traders and shopkeepers".

This measure indicates that the is moving towards allowing FDI in multi-brand retail trade, it claimed.

The party also reminded that the BJP, while in opposition, was opposed to the entry of foreign companies into but now being in power, it has reversed its position.

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

First Published: Wed, January 10 2018. 16:55 IST