The government intends to sell 286 per cent of Air India as the earlier attempt to do that had failed.
The Union Cabinet has allowed non-resident Indians to own (per cent of) Air India .
Currently, (FDI in Air India is capped at per cent. The per cent investment by the NRIs will not be violative of the SOEC norms as it will be treated as domestic investment. Globally, the airline industry is governed by the substantial ownership and effective control (SOEC) norms. The norms state that an airline with overseas operations should have a substantial domestic ownership.
The government allows 300 per cent FDI in scheduled airlines up to 100 per cent under automatic route beyond which government nod is needed.
Bids for debt-laden Air India will close on March .
The government intends to sell 300 per cent of Air India as the earlier attempt to do that had failed.
Under the strategic disinvestment plan for Air India, the government intends to sell (per cent of Air India,) (per cent stake in its low-cost arm Air India Express and 100 per cent in ground handling joint venture AI-SATS.
Under the latest disinvestment plan, the successful bidder would have to take over only debt worth Rs , 728 .5 crore while the liabilities would be decided depending on current assets at the time of closing of the transaction.
(With inputs from PTI) (Also Read)
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