The Foreign Investment Promotion Board (FIPB) Thursday gave its green signal to Singapore Airlines to start a full-service airline in partnership with Tata Sons entailing an initial foreign investment of USD 49 million.

This is Tatas' second venture in the aviation sector after its tie-up with Malaysian carrier Air Asia in February for a low cost passenger air service.

"It (Tata-SIA proposal) has been cleared," Economic Affairs Secretary Arvind Mayaram told reporters after a meeting of the Foreign Investment Promotion Board (FIPB) here.

Mayaram said no riders have been set for the joint venture.

While Singapore Airlines plans to invest USD 49 million, Tatas would be contributing remaining amount of the total planned USD 100 million investment in the joint venture.

The joint venture needs other government approvals before it can start operations.

Commenting on the development, Ratan Tata, Chairman Emeritus of Tata Group, welcomed the decision and told a TV channel that he was excited about FIPB approval. A lot of work was needed to be done to start the venture, he added.

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