You are here: Home » PTI Stories » National » News
Business Standard

Foreign airlines can own 49% stake in Air India

Press Trust of India  |  New Delhi 

Foreign airlines can now own up to 49 per cent stake in national carrier Air India, with the Cabinet clearing a proposal in this regard today.

The move comes at a time when the is working on the modalities for strategic disinvestment of the loss- making and is expected to attract more bidders for the

While allowing foreign airlines to have stake in Air India, the has also made it clear that the national carrier's substantial ownership would remain with Indian nationals.

The Cabinet, chaired by Modi, today gave its approval to a number of amendments in the policy, including those pertaining to

Now, foreign airlines have been allowed to have up to 49 per cent stake under the approval route in subject to certain conditions, an official release said.

Foreign airlines were allowed to invest under approval route in the capital of Indian companies operating scheduled and non-scheduled air services, up to the limit of 49 per cent of their paid-up capital.

The provision was not applicable to Air India.

"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...," the release said.

Foreign investments in Air India, including that of overseas airlines, should not exceed 49 per cent either directly or indirectly.

"Substantial ownership and effective control of Air India shall continue to be vested in Indian national," the release said.

A group of ministers is in the process of finalising the contours for the proposed strategic stake sale in the national carrier and expression of interest is likely to be invited from bidders soon.

Debt-laden Air India is staying afloat on taxpayers' money.

Last year, the (CCEA) gave its in-principle nod for the strategic disinvestment of the

Under a turnaround plan approved by the previous UPA regime, Air India is to receive up to Rs 30,231 crore from the government subject to meeting certain performance thresholds. The ten-year bailout package began from 2012.

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

First Published: Wed, January 10 2018. 15:15 IST