FDI in Air India: Govt permits NRIs to own up to 100% stake in Air India

Senior Citizen Savings Scheme (SCSS) is a scheme introduced by the Government of India for senior citizens and retired persons.

The cabinet allowed non-resident Indians (NRIs) to acquire up to 100% of state-owned Air India and approved 72 changes to the companies law, paving the way for direct overseas listing and decriminalising a host of offences under the act.

It also approved the previously announced consolidation of 10 public sector banks into four with effect from April 1.

“Today’s decision on Air India is one milestone decision where NRIs who are Indian citizens will get permission to invest 100% in the airline,” information and broadcasting minister Prakash Javadekar told reporters in a briefing.

The government has put its entire stake in Air India up for sale. Previously, NRIs could own up to 49% in the carrier. The higher limit could increase participation in the divestment. An attempt to sell as much as 76% of Air India in 2018 had been unsuccessful.

In Line with Other Airlines

There is no change in the limit for overseas investors in the national carrier, including foreign airlines, which remains at 49%, directly or indirectly.

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