Re­lief for Ma­haraja with 49% FDI

Governance Now - - NEWS -

The cabi­net has de­cided to al­low for­eign air­lines to in­vest up to 49% in­vest­ment in air

In­dia. How­ever, the cabi­net made it clear that the in­vest­ment should not ex­ceed 49% ei­ther di­rectly or in­di­rectly and that the own­er­ship and con­trol of the na­tional car­rier would con­tinue to be vested in In­dian na­tion­als. ear­lier, Niti aayog had pro­posed to­tal privatisation of air In­dia. It cited var­i­ous in­ter­na­tional ex­am­ples of gov­ern­ments sell­ing their en­tire stakes in air­lines and not re­tain­ing any share­hold­ing to make them vi­able. air In­dia was given a ₹30,231-crore life­line in 2012 as part of a turn­around plan that was spread over nine years. over half of that time has al­ready gone. In the re­main­ing time, some dif­fi­cult and harsh de­ci­sions need to be taken so that losses can be cut and priv­i­leges are ended. The na­tional car­rier was founded by JRD Tata as Tata air­lines in 1932. af­ter the sec­ond world war on July 29, 1946, air In­dia com­menced op­er­a­tions. It has been 70 long years since then and the news has been far from good even though In­dia is quite a promis­ing coun­try for aviation. Be­sides, the cabi­net ap­proved 100% FDI un­der au­to­matic route for sin­gle-brand re­tail trad­ing. also, 100 per­cent FDI un­der au­to­matic route in con­struc­tion de­vel­op­ment has been al­lowed. In­vestors have been al­lowed to in­vest in power ex­changes through pri­mary mar­ket.

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