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RSS affiliate opposes foreign investment in Air India

Press Trust of India  |  New Delhi 

The RSS-affiliated Swadeshi Jagaran today strongly opposed the Centre's decision to allow 100 per cent under automatic route for single brand retail and foreign investment up to 49 per cent in Air India, saying these decisions are not in "interest of the country".

The meeting, held yesterday, chaired by Modi has allowed 100 per cent foreign direct investment (FDI) in single and construction development under the automatic route.

It also permitted foreign airlines to invest up to 49 per cent under the approval route in the debt-ridden, loss making national carrier.

Expressing strong resentment on the government's decisions of easing investments, Swadeshi Jagran (SJM) co-convener said, the organisation, "firmly believes that easing the norms for in SBRT would go against the best interest of the country."

He further said that the more worrisome is the decision to set off the condition of mandatory sourcing requirement of 30 per cent of purchases from India, for five years after the opening of the first store by the foreign company.

"As a result of this decision foreign companies would get freedom of procuring the products from anywhere in the globe. This would go against the interests of the domestic and also would discourage the future investment in in India," he added.

It would go against the government's own policy of encouraging 'Make in India', he said, adding the SJM calls upon the governments to revisit this decision and do not tinker with the 30 per cent mandatory procurement by MNCs from within the country.

Opposing the disinvestment of Air India, Mahajan said the finances of national are in deep trouble, but allowing foreign investment is not the best of the solutions for ending its troubles.

There is a huge amount of resources of lying idle, which could easily be monetised to take the national carrier out of the blues, he added.

Under the circumstances, it would be prudent to honour the report of the parliamentary committee, which has recently recommended against the disinvestment in and has recommended for holding back this decision for the time being, he added.

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

First Published: Thu, January 11 2018. 21:15 IST