New Delhi, Jan 10 (PTI) The government today relaxed FDInorms in various sectors such as single brand retail andallowed foreign airlines to invest up to 49 per cent in AirIndia.
The decision was taken during the Cabinet meeting chairedby Prime Minister Narendra Modi here.
The Cabinet allowed overseas investors to invest 100 percent FDI (foreign direct investment) in single brand retailtrading and construction development without any governmentapproval, an official statement said.
"Foreign airlines allowed to invest up to 49 per centunder approval route in Air India," the statement said.
As per the policy, foreign airlines are allowed to investunder government approval route in Indian companies operatingscheduled and non-scheduled air transport services, up to thelimit of 49 per cent of their paid-up capital.
However, the provision was not applicable to Air India,thereby implying that foreign airlines could not invest in AirIndia.
"It has now been decided to do away with this restrictionand allow foreign airlines to invest up to 49 per cent underapproval route in Air India," it added.
This condition was relaxed subject to certain conditions.
The statement said that foreign investment in Air Indiaincluding that of foreign Airline (s) shall not exceed 49 percent either directly or indirectly and "substantial ownershipand effective control of Air India shall continue to be vestedin Indian National".
The government said that the decision would help provideease of doing business and also lead to larger FDI inflowscontributing to growth of investment, income and employment.
Further it has clarified that real-estate broking servicedoes not amount to real estate business and is therefore,eligible for 100 per cent FDI under automatic route.
The cabinet also decided to allow FIIs/FPIs to invest inpower exchanges through primary market as well.
So far 49 per cent FDI was permitted under automaticroute in power exchanges registered under the CentralElectricity Regulatory Commission (Power Market) Regulations,2010. However, FII/FPI purchases were restricted to secondarymarket only. PTI RRMR.
This is unedited, unformatted feed from the Press Trust of India wire.