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The Union Cabinet on Wednesday approved a slew of decisions including one to further ease divesting the government’s stake in Air India.
It also approved the Companies (Second Amendment) Bill, 2019 and the consolidation of 10 public sector banks into four.
An official statement said that the amendment to the foreign direct investment policy on civil aviation will permit FDI in Air India up to 100 per cent by non-resident Indians.
“The proposed changes to the FDI policy will enable foreign investment by NRIs into Air India. Up to 100 per cent, under the automatic route,” the statement said. Till now, NRIs were allowed 100 per cent FDI under the automatic route in other scheduled air transport service/domestic scheduled passenger airline.
72 changes to Companies Act
The Companies (Second Amendment) Bill, 2019 will remove criminality under the Companies Act in case of defaults that do not have an element of fraud or do not involve larger public interest. “This would also lead to further de-clogging of the criminal justice system in the country.
The Bill proposes 72 changes to ease operating conditions for corporates. Earlier, the Companies (Amendment) Act, 2015 changed certain provisions of the Act to remove difficulties faced in implementation of various provisions of the Act, a statement from the Ministry of Corporate Affairs said.
Bank consolidation
The Cabinet also approved a mega consolidation of public sector banks (PSBs) with effect from April 1. Ten PSBs will be merged to form four. The move will result in the amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank; of Syndicate Bank into Canara Bank; of Andhra Bank and Corporation Bank into Union Bank of India; and of Allahabad Bank into Indian Bank.
“The amalgamation would result in creation of seven large PSBs with scale and national reach with each amalgamated entity having a business of over ₹8 lakh crore,” an official statement said.
The Cabinet also approved an MoU for cooperation between the Ministry of Health and Family Welfare and the Ministry of Health and Public Hygiene of the Republic of Cote d'lvoire.
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