NRIs TO TAKE 100% IN AIR INDIA
What’s in News?
The Union Cabinet approved the proposal to allow non-resident Indians (NRIs) to acquire 100% stake in national carrier Air India.
The government in January had invited expressions of interest from investors for its entire stake in Air India, along with subsidiary, Air India Express, as well as 50% stake in Air India SATS Airport Services Pvt. Ltd, a joint venture between Air India and Singapore Airport Terminal Services.
- Full FDI: The Union Cabinet has decided to allow Non-Resident Indians (NRIs) who are Indian nationals to own up to 100% stake of Air India, which is bound for disinvestment.
- The Union Cabinet chaired by the Prime Minister Modi has decided to increase the maximum stake for NRIs from 49% to 100%.
- Announced by: It was announced by Shri Prakash Javadekar, Union Minister.
- Aim: The move is aimed at liberalising FDI policy.
- The amendment was meant to liberalise and simplify the FDI policy to provide ease of doing business in the country
- The government is in the process of selling the national carrier, having invited preliminary bids recently.
- The FDI (foreign direct investment) policy would be amended to allow NRIs who are Indian nationals to own up to 100% of Air India ‘under automatic route’, a government statement said.
- By doing so, the passengers will continue to get better and better services and it will also improve the business environment
Data to know:
- While FDI inflows stood at $45.15 billion in 2014-2015, the provisional figures for FDI have increased to $62 billion in the financial year 2018-2019.
- As per the Remittance Report of the World Bank, India is the highest receiver of remittance (USD 79 bn) in the year 2018.
WHO IS NRI?
- An Indian citizen who is ordinarily residing outside India and holds an Indian Passport.
- A person is considered NRI
- if He / She is not in India for 182 days or more during the financial year (or)
- if he/she is in India for less than 365 days during the 4 years preceding that year and less than 60 days in that year.
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