The Foreign Investment Promotion Board (FIPB) on July 29 cleared the Rs 2,058-crore Jet Airways-Etihad deal with some riders, sending out a strong signal that the government was determined to be flexible in order to encourage foreign investment.
Jet Airways had submitted a modified shareholder agreement on July 25 that appeared to address all concerns raised by various ministries and stock market watchdog Sebi. The Indian authorities were concerned that the original agreement signed in April this year would result in the Abu Dhabi-based carrier acquiring effective control of India's largest airline by revenues, though it formally had only a 24% equity stake.
"There are some minor changes to be made in the language, but otherwise they (FIPB) have cleared it," Civil Aviation Minister Ajit Singh told reporters, adding that the revised proposal had addressed the concerns of Sebi and his ministry.
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