BJETS wants 100% in arm, to pump in $900 mn

New Delhi: BJETS Pte, a Singapore-based company owned by Balaji Ramamoorthy, a person of Indian origin (PIO), has sought permission to pump in nearly $900 million (Rs 3,600 crore) to bring 100 business jets to India for charter and fractional ownership business. The company has sought permission to buy Business Jets India, a company set up by the Ramamoorthy family, for its Indian foray, sources said.
Interestingly, the Singapore-based company has sought clearance for 100% stake in Business Jets India despite reports about Tatas picking up a stake in the venture. According to revised foreign direct investment (FDI) policy guidelines, 74% FDI is allowed in chartered airlines while NRIs are allowed 100%. BJETS has urged the government to waive the equity ceiling and allow 100% foreign investment. Industry sources say the Tata Group is likely to pick up more than 35% stake in the Indian venture of BJETS.
According to the business plan submitted to the Foreign Investment Promotion Board (FIPB), BJETS plans to register 100 business jets in India by 2015 and fund the entire operations through infusion of $900 million out of which $200 million would be equity and $700 million would be debt.
25/02/08 G Ganapathy Subramaniam/Economic Times

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Categories: Foreign Feb 2008, Indian Aviation- In General Feb 2008, New Feb 2008