Mumbai: The 24 per cent stake sale between Jet Airways Ltd’s and Abu Dhabi-based Etihad Airways has hit another roadblock. The Centre is now examining whether Naresh Goyal, Chairman, Jet Airways, who is an NRI, his share in the airline should be considered as Foreign Direct Investment (FDI), as per The Hindu Business Line report.
If the Department of Industrial Policy and Promotion (DIPP) decides that the NRI stake has to be counted in the 49 per cent FDI cap for investments in the civil aviation sector, the company will have to come up with a fresh proposal. Under the existing plan, the investment will breach the FDI limit, a DIPP official said.
“The FDI policy does not clearly say if NRI investments are to be included or excluded in the FDI calculation for the civil aviation sector. The DIPP is examining this and will submit its views to the Foreign Investment Promotion Board (FIPB),” the official said.
12/06/13 Travel Biz Monitor
To Read the News in full at Source, Click the Headline
If the Department of Industrial Policy and Promotion (DIPP) decides that the NRI stake has to be counted in the 49 per cent FDI cap for investments in the civil aviation sector, the company will have to come up with a fresh proposal. Under the existing plan, the investment will breach the FDI limit, a DIPP official said.
“The FDI policy does not clearly say if NRI investments are to be included or excluded in the FDI calculation for the civil aviation sector. The DIPP is examining this and will submit its views to the Foreign Investment Promotion Board (FIPB),” the official said.
12/06/13 Travel Biz Monitor
