In a move that is likely to have an impact on the sale of the national carrier, the government has notified amendments to Foreign Exchange Management rules and allowed NRIs 100% foreign direct investment (FDI) in Air India.
The gazette notification follows a Cabinet nod for the same in March this year.
The amendment removes the exception which permitted Overseas Citizens of India 100% FDI in air transport, but not Air India. This category of citizens has been replaced with NRIs, now allowed to commit 100% FDI in air transport, including Air India, through automatic route.
“Foreign investments in m/s Air India Limited, including that of foreign airlines shall not exceed 49% either directly or indirectly except in case of those NRIs, who are Indian nationals, where foreign investments is permitted up to 100% under automatic route,” according to the notification on the third amendment to FEMA (non-debt instruments) Rules, 2020.
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