Modi-Led-Cabinet gives green signal to foreign investment of up to 49% in Air India
Modi-Led-Cabinet gives green signal to foreign investment of up to 49% in Air India
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New Delhi [India], Jan 10 (NT): The Union Cabinet on Wednesday announced that foreign airlines would be able to invest up to 49 percent in Air India under agreement method.

The Cabinet, under the leadership of Prime Minister Narendra Modi stated that applicability of this decision would be focus on two conditions

-  First is foreign investment(s) in Air India including that of foreign Airline(s) shall not exceed 49 percent, either directly or indirectly;

-And Second is extensive ownership and effective power of Air India shall keep on to be vested in Indian National.

As per the current guidelines, foreign airlines are permitted 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 percent of their paid-up capital. though, this provision was currently not valid to the national airlines, so entailing that foreign airlines could not invest in Air India.

though, this provision has been got rid of, in this manner that creating opportunities for foreign airlines to invest up to 49 percent under approval route in Air India, focus to the aforesaid circumstances.

At present, the Air India Maharaja has a debt burden of more than Rs 52,000 crore.

The earlier Manmohan Singh-led UPA Government had extended an aid package worth  Rs 30,000 crore to the national carrier for a ten-year period which was began from 2012.

In November 2017, Air India was scheduled to obtain a loan worth Rs. 1,500 crore from the Bank of India towards the former's working capital necessities.

As per reports suggest that the airline had rented around Rs 3,000 crore as short term loans from two lenders  which are the IndusInd Bank and the Punjab National Bank.

The Air India group covers 44 overseas and 75 domestic destinations. Flights operate to Copenhagen, Tokyo, Washington, Stockholm, Sydney, Hong Kong, Kabul, Colombo, Seoul, Singapore and London, among other far-off cities.(NT)

 

 

 

 

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