Government announce the changes in FDI norms permitting NRIs to acquire 100% in Air India

Finance ministry has announced the amendments in Foreign Direct Investments rules permitting the non-resident Indians to acquire up to 100% in Air India Limited at par with other scheduled airline operators. As per the notification, foreign investments in Air India, including that of foreign airlines shall not exceed 49% either directly or indirectly except in the case of those NRIs, who are Indian nationals, where foreign investments are permitted up to 100% under the automatic route. “Substantial ownership and effective control of M/s Air India Limited shall continue to be vested in Indian Nationals as stipulated in Aircraft Rules, 1937,” Department of Economic Affairs (DEA) said in a notification. The government has put its entire stake in Air India up for sale. Previously, NRIs could own up to 49% in the carrier.