PMO seeks clarifications on Jet-Etihad deal details
1 July 2013 10:36 PM GMT
The Prime Minister's Office has sought clarifications from ministries concerned, including Commerce and Industry, on the proposed Rs 2,058 crore Jet- Etihad deal.
The deal, largest foreign investment proposal in the aviation sector, is facing regulatory hurdles with various ministries raising major concerns over the ultimate control of Jet Airways post transaction.
Government sources said the Prime Minister's Office (PMO) has sought clarifications on the Jet Airways selling stake to Abu Dhabi-based Etihad Airways from ministries and departments concerned including Commerce and Industry, Civil Aviation and Corporate Affairs. However, nature of the clarifications sought could not be immediately ascertained.
The Foreign Investment Promotion Board (FIPB), which clears FDI proposals, on 14 June had deferred a decision on the deal citing control and ownership issues.
'It (Jet-Etihad proposal) has been deferred. We need more details on effective control and ownership,' Economic Affairs Secretary Arvind Mayaram had said.
Under the proposed deal, Jet would sell its 24 per cent to Etihad Airways. Concerns have been primarily raised on the proposed ownership and control structure of the domestic airlines. Besides, capital market regulator Sebi, fair trade watchdog CCI and Department of Industrial Policy and Promotion (DIPP) also have reservations about the deal.
The deal, largest foreign investment proposal in the aviation sector, is facing regulatory hurdles with various ministries raising major concerns over the ultimate control of Jet Airways post transaction.
Government sources said the Prime Minister's Office (PMO) has sought clarifications on the Jet Airways selling stake to Abu Dhabi-based Etihad Airways from ministries and departments concerned including Commerce and Industry, Civil Aviation and Corporate Affairs. However, nature of the clarifications sought could not be immediately ascertained.
The Foreign Investment Promotion Board (FIPB), which clears FDI proposals, on 14 June had deferred a decision on the deal citing control and ownership issues.
'It (Jet-Etihad proposal) has been deferred. We need more details on effective control and ownership,' Economic Affairs Secretary Arvind Mayaram had said.
Under the proposed deal, Jet would sell its 24 per cent to Etihad Airways. Concerns have been primarily raised on the proposed ownership and control structure of the domestic airlines. Besides, capital market regulator Sebi, fair trade watchdog CCI and Department of Industrial Policy and Promotion (DIPP) also have reservations about the deal.
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