New Delhi: The Foreign Investment Promotion Board (FIPB) on Thursday cleared a proposal by Tata-Singapore Airlines (SIA) to start a full service airline in India.
Economic Affairs Secretary Arvind Mayaram said the proposal was cleared without any riders. Now, Tata-SIA would have to secure security clearance from the home ministry, as well as an approval from the civil aviation ministry, along with an air operator’s permit from the Directorate General of Civil Aviation.
On September 19, Tata Sons had tied up with SIA to launch Tata SIA Airlines Ltd, a full service carrier in India, at an initial investment of $100 million.
On Thursday, Ratan Tata, former chairman of Tata group, met Finance Minister P Chidambaram, after the government cleared the proposal.
With a stake of 51 per cent, the Tatas would be the driving force in the joint venture. Singapore Airlines would have minority representation on the board, and “will not be in a position to have ‘de-facto’ control over the board”, the two companies had stated in their proposal to FIPB. The joint venture company would be incorporated in New Delhi, with India being its principal place of business. The airline has chosen Delhi as its operational hub, owing to capacity constraints at the Mumbai airport.
Read news in full 25/10/13 Business Standard
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