With secy abroad, FIPB defers Jet QIP nod

New Delhi: The Foreign Investment Promotion Board (FIPB) has deferred a proposal by Jet Airways seeking permission for raising capital up to $400 million through the QIP route.
In its meeting held on October 9, details of which has been revealed to DNA Money, FIPB recommended deferment after the ministry of civil aviation requested for it because its secretary was abroad and no decision could be taken in his absence.
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A Jet spokesperson said the company has not heard anything from the FIPB officially and hence would not be able to offer comment. The next FIPB meeting is scheduled for October 30.
After the FIPB clearance, Jet's proposal will need a Union Cabinet nod. Any proposal involving an inflow of more than Rs 600 crore needs cabinet approval.
In its current form, Jet's proposal involves issue of fresh share to domestic and foreign institutional investors (FIIs).
Jet has acknowledged in the proposal that the move would raise foreign direct investment (FDI) in the carrier beyond the permitted 49% cap for scheduled air transport services.
22/10/09 Sindhu Bhattacharya/Daily News & Analysis

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Categories: Foreign Oct 2009, Jet Airways Oct 2009