Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
January 24, Wednesday 2018 9:16 AM       

       HEADLINES: Clash spreading in Malappuram, CPM office destroyed                                              CPM using SFI to carry out attacks: Chennithala                                              Malayalee fisherman who died at sea not given respect, protest in Pulluvila                                              SC to hear Kerala love jihad case, Jaideep Gupta to appear for govt                                              Freedom fighter Kottukal A Prabhakaran passes away                                              Father of arrested terrorist Qureshi cries foul                                              Triple Talaq- an excuse to target 'Shariat': Owaisi                                              Impeachment motion against CJI: Yechury discusses possibilities with other parties                                              Shiv Sena to contest 2019 LS polls alone                                              Modi invokes 'Vasudhaiva Kutumbakam' at WEF                                              25 students injured in Pak varsity clash                                              UN agency for Palestinians seeks funds after US cuts                                              Mallya extradition trial's next hearing date remains uncertain                                              Lawmakers back bill to reopen US govT                                              Trump signs funding bill, ends US govt shutdown                                              Blues take on Transport United in AFC Cup                                              Gaurika returns to action in second leg at Hero WPGT                                              Tendulkar gives pep talk to women's team ahead of SA series                                              Australian Open: Federer eases into quarters                                              IPL 2018 to begin from April 6                                              Kaumudi Facebook
       BUSINESS Next Article: Financial bids for all 12 large NPA accounts by month-end: SBI  
       Foreign airlines can own up to 49% stake in Air India
 
         Posted on :08:57:07 Jan 11, 2018
   
A A
       Last edited on:08:57:07 Jan 11, 2018
         Tags: Foreign airlines, 49% stake, Air India
 

NEW DELHI: The government Thursday allowed foreign airlines to own up to 49 per cent stake in national carrier Air India at a time when the process for strategic disinvestment of the debt-laden airline is on.

The move would pave the way for Indian players such as Tatas to join hands with foreign entities in bidding for Air India.

While allowing foreign investors, including overseas airlines, to have stake in Air India, the government has also made it clear that the national carrier's substantial ownership and effective control would remain with an Indian national.

A group of ministers is in the process of finalising the contours for the proposed strategic stake sale in the national carrier and expression of interest is likely to be invited from bidders soon.

The Cabinet, chaired by Prime Minister Narendra Modi, today gave its approval to a number of amendments in the FDI policy, including those pertaining to Air India.

Now, foreign airlines have been allowed to have up to 49 per cent stake under the approval route in Air India subject to certain conditions, an official release said.

Foreign airlines were allowed to invest under government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 per cent of their paid-up capital.

The provision was not applicable to Air India.

"It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India," the release said.

Foreign investments in Air India, including that of overseas airlines, should not exceed 49 per cent either directly or indirectly.

"Substantial ownership and effective control of Air India shall continue to be vested in Indian national," the release said.

Civil Aviation Minister Ashok Gajapathi Raju told PTI that permitting 49 per cent foreign direct investment in Air India brings the airline at par with other domestic carriers and does away with the preferential treatment that was extended to the national carrier.

While there have been reports suggesting that Tatas and Singapore Airlines might jointly bid for Air India, there has been no official word from the government or the carriers concerned.

Singapore Airlines today said it will keep options open on Air India disinvestment.

Surviving on taxpayers' money, Air India is estimated to have a debt burden of more than Rs. 50,000 crore. Various efforts are being made to improve the financial performance of the national airline, including by way of sale of non-core assets.

Under a turnaround plan approved by the previous UPA regime, Air India is to receive up to Rs. 30,231 crore from the government subject to meeting certain performance thresholds.

The ten-year bailout package began from 2012.

The International Air Transport Association (IATA), a global grouping of airlines that includes Air India, said the amendment in the FDI policy is a step in the right direction.

Aviation think tank CAPA welcomed the decision to allow foreign airlines to invest up to 49 per cent in Air India.

However, the government's decision to allow FDI in Air India was opposed by the Congress and the Left.

"Interesting-Commandeer a low valuation report, sell Air India to a crony oligarch who in turn disinvests 49 per cent to a foreign airline at hefty premium," Congress spokesperson Manish Tewari said in a tweet.

Last year, the Cabinet Committee on Economic Affairs (CCEA) gave its in-principle nod for strategic disinvestment of the airline.

"Now Air India is on par with other Indian airline operators with respect to FDI norms. This was much needed in light of the proposed privatisation of Air India and should hopefully bolster the prospects of Air India's privatisation," Jatin Aneja, Partner and National Practice Head (Project and Project Finance) at law firm Shardul Amarchand Mangaldas and Co said.

A A
       BUSINESS
Next Article: Financial bids for all 12 large NPA accounts by month-end: SBI
 
 
BUSINESS HEADLINES
Petrol, diesel prices jump: Oil Ministry seeks excise duty cuts  
In a first, Sensex breaches 36,000-mark  
India fifth most attractive market for investments: PwC survey  
Davos: Modi chairs round-table meeting with top CEOs  
India's growing rich-poor divide: Richest 1% gross 73% wealth in 2017  
Increase tax exemption limit to Rs. 3 lakh: SBI report  
India Inc. upbeat about PM Modi at WEF  
Mobycy's dockless bicycling sensation scales heights; completes 7,230 rides  
AirAsia India hires Sunmuga Kanaratnam as Head of Engineering  
Sensex hit fresh record high of 35,614, Nifty holds 10,900  
Maha govt mulling to start online lottery system  
Chidambaram hits out at 'anti-consumer' Centre over fuel prices  
Patanjali's Yog Acharyas to conduct Yoga sessions at World Economic Forum  
Mauritius largest source of FDI in India: RBI  
Exports rise over 12% due to engineering goods, petro products  
Budget 2018: ASSOCHAM seeks higher outlay for education  
Rise in demand for Yoga accessories from abroad: Expert  
Nine more cities added to Smart City Mission, total now 99  
Gold retailers hopeful of tax relief ahead of Budget  
GST Council discusses making return filing process simpler  
Banks fuel markets Bull Run; Sensex, Nifty hit new peaks  
Netanyahu meets biz leaders over power breakfast  
Budget 2018: Hardware dealers suggest simplification of filing GST returns  
SBI to raise Rs 20,000 cr for affordable housing, infra  
Rupee rebounds 16 paise to 63.88 a dollar  
 
Will Wednesday's Motor strike be of any help to public?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy