New Delhi, March 4: The Government of India on Wednesday announced that non-resident Indians (NRIs) can now acquire upto 100 percent stake in cash-strapped state carrier Air India. The announcement, made after the Cabinet Meeting by Union Minister Prakash Javadekar, comes nearly a month after the Centre had informed the Parliament that it would be undertaking a renewed bid for Air India's divestment.

"Regarding the strategic sale of Air India, now Non-resident Indians (NRIs) can acquire 100% of stake in the airlines. Earlier it was 49 percent," Javadekar said in the press conference following the Cabinet meeting which was chaired by Prime Minister Narendra Modi. The announcement is expected to bolster the prospects of Air India's privatisation. Air India to Be Closed if Privatisation Bid Fails: Civil Aviation Minister.

Update by ANI

In the Union Budget presented for financial year 2020-21, Finance Minister Nirmala Sitharaman told the Parliament that the government would be completely disinvesting from the loss-incurring airline. Instead of parting ways with half of the stakes, as announced in the previous fiscal policy, Sitharaman said the government would launch a fresh bid to completely disinvest from the carrier.

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey, while speaking to the media last month, said the process to disinvest the national carrier would begin in the first-half of the current fiscal. In the next couple of months, the government is expected to invite bidders for the sale of Air India.

Air India's fiscal condition deteriorated nearly a decade ago, following the entry of private players in domestic aviation. By the end of March 2019, the total pile of debts had climbed to Rs 58,283 crore. Data revealed that the Narendra Modi government pumped a cumulative amount of Rs 24,000 crore in its first four years in bid to revive the airline's health. However, it incurred an additional loss of Rs 20,000 crore in the same period.

(The above story first appeared on LatestLY on Mar 04, 2020 03:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).