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

News Network
March 4, 2020

New Delhi, Mar 4: The government on Wednesday permitted NRIs to own up to 100 per cent stake in disinvestment-bound Air India.

The decision comes at a time when the government is looking to sell 100 per cent stake sale in the national carrier.

Union minister Prakash Javadekar said the Cabinet has approved allowing Non-Residents Indians (NRIs) to hold up to 100 per cent stake in Air India.

Allowing 100 per cent investment by Non-Resident Indians (NRIs) in the carrier would also not be in violation of SOEC norms. NRI investments would be treated as domestic investments.

Under the Substantial Ownership and Effective Control (SOEC) framework, which is followed in the airline industry globally, a carrier that flies overseas from a particular country should be substantially owned by that country's government or its nationals.

Currently, NRIs can acquire only 49 per cent in Air India. Foreign Direct Investment (FDI) in the airline is also 49 per cent through the government approval route.

As per the existing norms, 100 per cent FDI is permitted in scheduled domestic carriers, subject to certain conditions, including that it would not be applicable for overseas airlines.

In the case of scheduled airlines, 49 per cent FDI is permitted through automatic approval route and any such investment beyond that level requires government nod.

On January 27, the government came out witha Preliminary Information Memorandum (PIM) for Air India disinvestment. It has proposed selling 100 per cent stake in Air India along with budget airline Air India Express and the national carrier's 50 per cent stake in AISATS, an equal joint venture with Singapore Airlines.

Under the latest disinvestment plan, the successful bidder would have to take over only debt worth Rs 23,286.5 crore while the liabilities would be decided depending on current assets at the time of closing of the transaction.

This is the second attempt by the government in as many years to divest Air India, which has been in the red for long.

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News Network
February 18,2020

New Delhi, Feb 18: India emerged as the world's fifth-largest economy by overtaking the UK and France in 2019, says a report.

A US-based think tank World Population Review in its report said that India is developing into an open-market economy from its previous autarkic policies.

"India's economy is the fifth-largest in the world with a GDP of $2.94 trillion, overtaking the UK and France in 2019 to take the fifth spot," it said.

The size of the UK economy is $2.83 trillion and that of France is $2.71 trillion.

The report further said that in purchasing power parity (PPP) terms, India's GDP (PPP) is $10.51 trillion, exceeding that of Japan and Germany. Due to India's high population, India's GDP per capita is $2,170 (for comparison, the US is $62,794).

India's real GDP growth, however, it said is expected to weaken for the third straight year from 7.5 per cent to 5 per cent.

The report observed that India's economic liberalisation began in the early 1990s and included industrial deregulation, reduced control on foreign trade and investment, and privatisation of state-owned enterprises.

"These measures have helped India accelerate economic growth," it said.

India's service sector is the fast-growing sector in the world accounting for 60 per cent of the economy and 28 per of employment, the report said, adding that manufacturing and agriculture are two other significant sectors of the economy.

The US-based World Population Review is an independent organisation without any political affiliations.

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News Network
June 26,2020

New Delhi, Jun 26: "Iam Indira Gandhi's granddaughter, not an undeclared BJP spokesperson like some of the opposition leaders," Congress general secretary Priyanka Gandhi Vadra on Friday said, as she alleged that the Uttar Pradesh government is threatening her through various departments for speaking the truth. Priyanka Gandhi's dare to the Uttar Pradesh government came days after the Agra administration asked her to withdraw within 24 hours the claim of high coronavirus deaths in the district.

The Congress general secretary in-charge UP East has accused the Yogi Adityanath government of indulging in propaganda instead of dealing with the pandemic. "As a public servant, my duty is towards the people of Uttar Pradesh. And this duty is to put out the truth before them and not to put forth government propaganda. The UP government is wasting its time by threatening me through its various departments," Priyanka Gandhi said in a tweet in Hindi.

"They can take whatever action they want, I will keep putting forth the truth. I am Indira Gandhi's granddaughter not an undeclared BJP spokesperson like some of the opposition leaders," she said. This week, Priyanka Gandhi repeatedly attacked the Uttar Pradesh government over the "high" COVID-19 mortality rate in Agra and on other issues related to the state government's handling of the pandemic.

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News Network
July 24,2020

New Delhi, Jul 24: The Delhi High Court on Friday asked the ICMR to come out with a clarification that mobile number, government-issued identity card, photographs or even a residential proof ought not to be insisted upon for Covid-19 test of mentally ill homeless persons.

According to an Indian Council of Medical Research (ICMR) advisory of June 19, every person who was to be tested for Covid-19 has to provide a government-issued identity proof and should have a valid phone number for tracing and tracking the individual and his/her contacts.

A bench of Chief Justice D N Patel and Justice Prateek Jalan said that ICMR should issue a clarification by way of a circular or an official order that the identity proof, address proof and mobile number are not required for testing mentally ill homeless persons.

The high court said a camp can be organised for testing such persons as is being done across Delhi for others.

"Guidelines have to be given by you (ICMR). You put it in black and white for the states'' benefit. You only need to clarify in two-three lines that mobile number, address proof and identity cards are not required for testing mentally ill homeless persons," it said.

"Use your powers for the public at large. Once you do so (issue the clarification), all states will comply," the bench added.

Additional Solicitor General Chetan Sharma, appearing for ICMR, sought time to take instructions from the government regarding the observations made by the bench.

The high court, thereafter, listed the matter for further hearing on August 7.

The bench was hearing a PIL moved by advocate Gaurav Kumar Bansal seeking directions to ICMR and Delhi government to issue guidelines for Covid-19 testing of mentally ill homeless persons in the national capital.

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The high court on July 9 had asked the ICMR to consider the plight of the mentally ill homeless persons and see whether they can be tested without insisting upon a mobile number, government issue identity card and residential address proof.

The bench had said to ICMR that many homeless mentally ill persons are institutionalised or in shelter homes and therefore, traceable, so there was no need for their identity proof or phone numbers to test them for Covid-19.

In response to the court''s query, ICMR has filed an affidavit stating that the purpose behind the submission of government identity card and telephone number was to ensure proper tracking and treatment of positive cases and their contacts as ''Test/Track/Treat'' is the best strategy for control of Covid-19 pandemic. 

It further said that since health was a state subject, the concerned state health authority may consider adopting a suitable protocol to ensure that the strategy of ''Test/Track/Treat'' is followed and the grievance raised in the PIL is also addressed.

ICMR, in its affidavit, has said that it has only advised facilitating contact tracing as well as tracking of the Covid-19 infected patients.

"The modalities regarding the contact tracing as well as tracking of the Covid-19 infected patients completely falls under the domain of IDSP. NCDC and state health authorities. 

"ICMR is a research organization and the contact tracing, as well as tracking of the Covid-19 infected patients, is not under the domain of ICMR," it has said in its affidavit.

Bansal has claimed in his petition that the Delhi government has not taken seriously the lack of guidelines with respect to Covid-19 testing of mentally ill homeless persons.

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He has said the high court had on June 9 directed it to address the grievances raised by him in another PIL with regard to mentally ill homeless persons in accordance with law, rules, regulations and government policy.

He said that on June 13 he also sent a representation to the Chief Secretary of Delhi government for providing treatment to mentally ill homeless persons in the national capital who have no residence proof. 

However, nothing was done by the Delhi government, he had told the court.

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