NEW DELHI : The Union cabinet on Wednesday approved a proposal to let non-resident Indians (NRIs) own up to a 100% stake in Air India Ltd as the government attempts to make a success of its second attempt to completely privatize the debt-laden airline.
The cabinet, headed by Prime Minister Narendra Modi, has approved an amendment to the foreign direct investment (FDI) policy to permit FDI in Air India by NRIs up to 100% under the automatic route, the government said.
The government, which aims to divest its entire stake in Air India, last month began the stake sale process by inviting offers from potential investors after a costly turnaround plan and an earlier effort to sell a controlling stake in the flag carrier failed.
