27 December 2019: The Government of India may increase the foreign direct investment (FDI) limit in the aviation sector from 49 per cent to 100 per cent to appeal international bids for Air India
For a very long time the Indian government has been trying to sell the airline which is debt-ridden but they could not attract bidders.
The Substantial Ownership and Effective Control (SOEC) clause does not allow any foreign investor from taking complete control of an airline, run by a board that has two-third members as Indians.
Currently, 100 per cent FDI is permissible under automatic route for MRO (maintenance, repair, overhaul), ground handling and aircraft purchase, in the aviation sector.