Air India to be sold only to Indian entities :Govt

New Delhi Aug 28: Some Crucial information was released today.The government has unveiled a new consolidated Foreign Direct Investment policy statement today. Some of the issues were clarified

* Currently foreign companies can own 49 % stake in Indian Airlines.

* Foreign investors or airlines will be allowed to run an airline in India only if the substantial ownership and effective control (SOEC) is with Indians.

* Foreign carriers can own up to 49% stake in Indian carriers is not applicable to Air India.

Recently the cabinet has in principle approved the disinvestment of Indian Airlines and a comitee has been formed to look after the modalities of the sale.

Sources say that the government has taken this decision because of the sentiment attached to the airline as Maharaja and also the airlines owes Rs 50000 crore debt so foreign players might not be interested to buy the airlines.