English हिन्दी
Connect with us

India News

FDI rules relaxed, debt-ridden Air India opened for foreign investment

Published

on

Modi govt relaxes FDI rules, will allow foreign airlines to invest in Air India

[vc_row][vc_column][vc_column_text]

Narendra Modi Cabinet approves slew of changes in FDI rules, 100 per cent FDI through automatic route in single brand retail allowed

Over three years after it took a strong position against the then Dr Manmohan Singh-led UPA government’s decision for allowing foreign direct investment in various sectors, including single and multi-brand retail, the BJP under Prime Minister Narendra Modi appears to be going all out to promote foreign investment in various sectors of India’s stagnating economy.

On Tuesday, a meeting of the Union Cabinet chaired by the Prime Minister decided to substantially relax rules for FDI in a host of sectors, including single brand retail trading (SBRT), construction and civil aviation. The Cabinet has approved amendments to the Centre’s FDI policy in the civil aviation sector, paving the way for a liquidity infusion in the cash-strapped national carrier – Air India – which was hitherto excluded from the list of India’s airline operators in which FDI was allowed.

“As per the extant policy, foreign airlines are allowed to invest under Government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 per cent of their paid-up capital. However, this provision was presently not applicable to Air India, thereby implying that foreign airlines could not invest in Air India. It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India,” an official statement from the government said after the Cabinet meeting.

The Cabinet has decided that FDI in the debt-ridden Air India will be permitted on the condition that it does not exceed 49 per cent either directly or indirectly and that “substantial ownership and effective control of Air India shall continue to be vested in Indian National.”

The Centre has sought to justify its move claiming that the relaxation of FDI norms would help provide ease of doing business and lead to larger foreign investment inflows.

The Prime Minister and his cabinet seem to have realised that FDI is a major driver of economic growth and a source of non-debt finance for the economic development of the country. It is pertinent to recall that while the BJP was in Opposition and Modi was chief minister of Gujarat, he along with Arun Jaitley and Sushma Swaraj – then Leaders of Opposition in the Rajya Sabha and Lok Sabha respectively – had led the saffron party’s charge against the UPA government’s FDI policy.

Now, at a time when the country’s GDP seems to be on a steady decline amid projections of continuing stagnation in the domestic economy owing to disruptions caused by the Goods and Services Tax (GST) rollout, the Modi government is going all out to embrace a tool on boosting investment inflows that it had once vociferously decried for being against the interests of India.

Besides opening up Air India for FDI, the other key decision taken at Tuesday’s Cabinet meet was the red-carpet rollout for foreign investment in single brand retail trading.

“Extant FDI policy on SBRT allows 49 per cent FDI under automatic route, and FDI beyond 49 per cent and up to 100 per cent through Government approval route. It has now been decided to permit 100 per cent FDI under automatic route for SBRT,” the official statement said.

“It has been decided to permit single brand retail trading entity to set off its incremental sourcing of goods from India for global operations during initial 5 years, beginning 1st April of the year of the opening of first store against the mandatory sourcing requirement of 30 per cent of purchases from India. For this purpose, incremental sourcing will mean the increase in terms of value of such global sourcing from India for that single brand in a particular financial year over the preceding financial year, by the non-resident entities undertaking single brand retail trading entity, either directly or through their group companies. After completion of this 5 year period, the SBRT entity shall be required to meet the 30 per cent sourcing norms directly towards its India’s operation, on an annual basis,” the government said.

On FDI in the construction sector, the government said: “It has been decided to clarify that real-estate broking service does 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 in power exchanges through primary market as well. So far 49 per cent FDI was permitted under automatic route in power exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010 but FII/FPI purchases were restricted to secondary market only.

The Centre has also decided to relax the rules followed for approval of FDI proposals that are moved in the automatic route sectors.

As per the existing procedures, FDI applications involving investments from Countries of Concern, requiring security clearance as per the extant FEMA 20, FDI Policy and security guidelines are to be processed by the Union home ministry for investments falling under automatic route sectors. Cases pertaining to government approval route sectors requiring security clearance are processed by the respective administrative ministries.

“It has now been decided that for investments in automatic route sectors, requiring approval only on the matter of investment being from country of concern, FDI applications would be processed by Department of Industrial Policy & Promotion (DIPP) for Government approval,” the Cabinet press note said.

[/vc_column_text][/vc_column][/vc_row]

India News

Ajit Pawar dismisses speculation on Supriya Sule joining BJP

Ajit Pawar has dismissed speculation about Supriya Sule joining the BJP, calling such rumours exaggerated and stressing that his focus remains on elections and development.

Published

on

Ajit Pawar

Amid renewed political speculation around Nationalist Congress Party–Sharad Pawar (NCP-SP) leader Supriya Sule’s future, Maharashtra Deputy Chief Minister Ajit Pawar on Monday dismissed rumours of her joining the BJP, stating that he is “not an astrologer” and prefers to focus on governance and electoral outcomes rather than conjecture.

The remarks came after Sule publicly praised Prime Minister Narendra Modi for sending all-party delegations abroad following Operation Sindoor, triggering fresh political chatter in Maharashtra’s volatile landscape.

Ajit Pawar rejects political speculation

Responding to questions from the media, Ajit Pawar said speculative interpretations are often exaggerated and unnecessarily amplified.

“I am not an astrologer. Such speculative questions often become breaking news without reason. My focus is on development until January 15,” he said, seeking to put an end to the rumours.

On whether there is any possibility of the two factions of the Nationalist Congress Party coming together, Pawar said the immediate priority is electoral success.

“At present, our top priority is winning the elections. We are working with full effort to ensure a positive outcome,” he said.

On NCP reunification and family ties

Addressing broader questions on a possible reunification between the NCP and NCP-SP, Pawar used a familial analogy, suggesting that unity cannot be ruled out.

“We are one family. In every family, people come together during moments of happiness and sorrow. If family members decide to stand together, there is nothing wrong in that,” he said.

However, he did not indicate any concrete move or timeline for such a reunion.

Thackeray brothers’ reunion and voter behaviour

Commenting on the coming together of the Thackeray brothers, Pawar said the development could have electoral consequences.

“Shiv Sena (UBT) and MNS traditionally had different voter bases. With them coming together, vote division could reduce, which may benefit them electorally,” he said.

Pawar clarified that he played no role in facilitating the reunion but welcomed the move, calling it a positive development within a political family.

He also cautioned against assuming uniform voter consolidation, noting that voting behaviour varies across elections.

“Voters think differently in national, state and local elections. The results of the Lok Sabha and subsequent Assembly elections clearly show that,” he added.

On free facilities, local alliances and Mumbai remark

Responding to criticism over promises of free facilities, Pawar said such decisions rest with the Chief Minister at the state level and the Prime Minister at the national level. He added that at the local body level, his experience of over two decades guides his approach.

On alliances involving parties like the NCP, Shiv Sena and AIMIM in local bodies such as the Parli Municipal Corporation, Pawar said such arrangements are common and often finalised locally without involving senior leadership.

He also strongly rejected remarks by a BJP leader claiming Mumbai is not part of Maharashtra.

“Mumbai is in India, and within India, it is in Maharashtra. It will always remain a part of Maharashtra. Such statements are made around elections to draw attention,” Pawar said.

On Bharat Ratna for Sharad Pawar

When asked whether NCP founder Sharad Pawar should be awarded the Bharat Ratna, Ajit Pawar said the decision lies with the Central government.

“Sharad Pawar has served public life for over 60 years and taken many important decisions. Anyone is free to express an opinion, but the final call rests with the Centre,” he said.

Continue Reading

India News

PSLV comeback mission hit by third-stage anomaly during launch from Sriharikota

ISRO’s PSLV-C62 mission faced a third-stage anomaly around 30 minutes after launch, raising concerns over the rocket’s comeback flight after its 2025 failure.

Published

on

PSLV LAUNCH

At 10.18 am on Tuesday, the Polar Satellite Launch Vehicle (PSLV)-C62 lifted off from the Satish Dhawan Space Centre in Sriharikota, carrying 16 satellites into space. The launch marked the first PSLV mission of the year and was being closely watched as a comeback attempt following a failure in 2025.

Roughly 30 minutes after liftoff, the Indian Space Research Organisation (ISRO) stated that the mission had “encountered an anomaly” during its third stage. The space agency has initiated a detailed analysis but has not yet officially declared the mission a failure.

Third stage issue raises concerns again

The PSLV is a four-stage launch vehicle, with the first two stages reportedly performing as expected during Tuesday’s mission. The problem surfaced during the third stage, where deviation was observed.

ISRO chairman Dr V Narayanan said that a detailed assessment is underway. Historically, issues during the third stage of a rocket have often resulted in mission failure, although ISRO has so far avoided using that term for this launch.

The setback is significant as this was intended to be a recovery mission. The PSLV’s only launch in 2025 had also failed due to a third-stage issue. An analysis committee was formed after that failure, but its findings were not made public.

Mission payload and satellite loss

The mission aimed to place a surveillance satellite into orbit. The earth observation satellite, named Anvesha, was developed by the Defence Research and Development Organisation. Alongside it, the PSLV carried 15 additional satellites from multiple countries, including Brazil, Nepal and the UK.

With the anomaly occurring mid-mission, these satellites are now believed to be lost.

Track record remains strong despite setback

The PSLV has completed 64 missions so far, with four failures recorded prior to this launch. If the current mission is eventually declared unsuccessful, it would mark the fifth failure, keeping the overall success rate relatively high.

However, the timing of the anomaly is a concern, given the growing reliance on PSLV for commercial and strategic launches.

Impact on space industry and future launches

The development is particularly worrying for private players in India’s expanding space ecosystem. Several start-ups had payloads on this mission, including Hyderabad-based Dhruva Space, which had placed seven satellites onboard.

The outcome also casts uncertainty over the planned industry-led PSLV launch scheduled for the first half of 2026. That mission is being developed with participation from Hindustan Aeronautics Limited and Larsen and Toubro.

ISRO is expected to conduct a thorough investigation into the third-stage issue before finalising the status of the mission and outlining corrective measures.

Continue Reading

India News

Mani Shankar Aiyar’s remarks on Hindutva spark political backlash from BJP

Congress leader Mani Shankar Aiyar’s comments on Hindutva at a Kolkata debate have triggered sharp reactions from the BJP, escalating the Hinduism versus Hindutva debate.

Published

on

manishankar aiyer

Veteran Congress leader Mani Shankar Aiyar has triggered a political controversy after describing Hindutva as “Hinduism in paranoia” during a public debate in Kolkata, prompting a strong rebuttal from leaders of the Bharatiya Janata Party (BJP).

Aiyar made the remarks at a discussion titled “Hinduism needs protection from Hindutva”, organised by the Calcutta Debating Circle at the Calcutta Club on Sunday. Several political leaders, legal experts, historians and journalists participated in the debate.

Aiyar draws distinction between Hinduism and Hindutva

Speaking at the event, Aiyar argued that Hinduism and Hindutva are fundamentally different, describing Hinduism as a spiritual and civilisational faith, while calling Hindutva a political ideology that emerged in the early 20th century.

“Hindutva is Hinduism in paranoia. It asks 80 per cent Hindus to feel threatened by 14 per cent Muslims,” Aiyar said, adding that Hinduism had survived and flourished for thousands of years without the need for what he described as political protection.

He referred to incidents involving attacks by vigilante groups and criticised actions against individuals over religious practices, beef consumption and participation in Christmas celebrations. Aiyar also cited writings of Vinayak Damodar Savarkar, contrasting them with the teachings of Mahatma Gandhi and Swami Vivekananda, whom he described as proponents of non-violence and inclusivity.

According to Aiyar, “There is no way Gandhi’s or Vivekananda’s Hinduism can be protected or promoted by Savarkar’s Hindutva.”

BJP leaders push back strongly

Aiyar’s comments drew an immediate response from BJP leaders present at the debate and later from party spokespersons.

BJP MP Sudhanshu Trivedi questioned the framing of the debate itself, arguing that the term “Hindutva” refers to “Hindu tattva” or the essence of Hindu philosophy. He said that associating Hinduism with the suffix “ism” was misleading and dismissive of India’s indigenous traditions.

“When you cherish Hinduism, it is called Hindutva,” Trivedi said, rejecting the distinction drawn by Aiyar.

BJP spokesperson Shehzad Poonawalla accused Aiyar of repeatedly making remarks that, according to him, insult Sanatan Dharma. He claimed that the comments echoed the Congress party’s broader stance on Hindutva.

Poonawalla also referred to past statements by Congress leaders and said that Hindutva has been defined by the Supreme Court as a “way of life.” He accused the party of attempting to portray Hindutva as violent and divisive.

Political debate intensifies

The exchange has added to the ongoing political debate over the relationship between Hinduism and Hindutva, a subject that has remained contentious in Indian politics. While Aiyar defended his views as ideological and historical critique, BJP leaders framed the remarks as an attack on religious identity.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com