NRIs can control 100% shareholding in Air India

Non-resident Indians (NRIs) can bid for 100 per cent shares owned by the government in national carrier Air India as Union Cabinet on Wednesday approved changes in Foreign Direct Investment (FDI) norms.

“The Union Cabinet has approved to amend the extant FDI Policy to permit Foreign Investment (s) in Air India Ltd by NRIs, who are Indian Nationals, up to 100 per cent under automatic route,” a government statement said.

This decision has been taken at a time when last date to submit ‘Expression of Interest (EoI)’ to participate in strategic disinvestment of Air India is March 17.

It is believed that this decision has been taken to make the disinvestment process more attractive as previous attempts to attract suitors did not elicit any response.