NRIs may be allowed to bid for 100% stake in debt-laden Air India

Topics Air India | NRI

The government is likely to allow Non-resident Indians (NRIs) to bid for 100 per cent stake in Air India. A subsequent clarification will be issued as expression of interest (EoI) for the airline didn’t have that explicitly written. The government is not looking to change the rules regarding foreign direct investment (FDI) in the aviation sector, a senior official, said. The current rules allow 100 per cent stake sale of Air India, provided substantial ownership and effective control remains with the Indian partner, he said. But a clarification would be issued by the government soon to end the confusion, the official added. However, 100 per cent FDI for NRIs may be allowed, other sources said. Current rules allow a foreign investor or an airline to have up to a 49 per cent stake in an Indian carrier through the automatic route. The limit can be 100 per cent under approval route but would not be applicable for overseas airlines.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel