The Foreign Investment Promotion Board (FIPB) on Friday deferred a proposal for clearance to the Rs 2,058 crore Jet-Etihad deal. The board has sought more clarity on control and ownership of the Indian carrier.
“Its (Jet-Etihad) proposal has been deferred. We need more details on effective control and ownership,” Economic Affairs Secretary Arvind Mayaram, who heads FIPB, said after the meeting.
Market regulator SEBI and competition watchdog Competition Commission of India (CCI) have already sought clarifications from the premier private carrier on the transaction to ensure that Etihad’s ownership powers in Jet Airways remains in line with its 24 per cent stake in the company’s equity capital.
Civil Aviation Minister Ajit Singh, when asked about the development said, “SEBI has raised some concerns and asked both the airlines to rectify some parts of the pact. I don’t see any major problem for the deal,” Singh said.
Jet Airways sources claim that the airline has already submitted the necessary clarifications in this regard. The schedule for the next FIPB meeting is yet to be decided.
Telenor’s proposal gets nod Meanwhile, FIPB cleared the foreign investment proposal of the Norway-based Telenor to hike stake in its domestic subsidiary to 74 per cent from 49 per cent.
Telenor had sought government approval to hike stake by 25 per cent in its domestic subsidiary Telewings Communications to 74 per cent.