Govt approves 100 per cent FDI by NRIs in Air India

The Union Cabinet has allowed non-resident Indians to own 100 per cent of Air India.

Currently, FDI in Air India is capped at 49 per cent. A report had suggested that the civil aviation ministry has approached Department for Promotion of Industry and Internal Trade (DPIIT) for removal of the cap.

The government allows 100 per cent FDI in scheduled airlines based on certain conditions.

Bids for debt-laden Air India will close on March 17.

The Economic Times reported that Deloitte has begun due diligence on Tata Group-owned Vistara’s proposed bid for Air India.

The government intends to sell 100 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 100 per cent of Air India, 100 per cent stake in its low-cost arm Air India Express and 50 per cent in ground handling joint venture AI-SATS