Wednesday, March 6, 2013

FIPB clearance reflects govt investor friendly policies: Tata

  FIPB clearance reflects govt investor friendly policies: Tata

   Ratan Tata today said FIPB
clearance to the airline venture between Malaysia's AirAsia,
Tatas and another company reflects the Indian government's
"true investor friendly policies" and such actions will
reinforce confidence in the country.

     "FIPB approval of the airline project between Tatas,
AirAsia and Bhatias reflects the true investor friendly
policies of the government," tweeted the Chairman Emeritus of
Tata Sons.
     "This and other similar actions will, without doubt,
reinforce investor confidence in India," he said.

     "I applaud the government for its transparency and its
principled implementation of the stated policy," he added.
     AirAsia has decided to set up a 49:30:21 joint venture
with the Tata Sons and Telestra Tradeplace of Indian investor
Arun Bhatia to launch a new Indian airline.
     The Foreign Investment Promotion Board (FIPB), headed by
Department of Economic Affairs Secretary Arvind Mayaram,
approved the proposal at its meeting here.
     The new venture will mark the return of the Tatas to the
aviation sector. State-owned Air India had grown out of Tata
Airlines, which began flights in 1932.
     A senior government official said the initial investment
by the AirAsia-led joint venture would be Rs 80 crore.
     With the FIPB clearance, the AirAsia joint venture will
now have to approach aviation regulator Directorate General of
Civil Aviation for further clearances and a scheduled air
operator's permit which allows an airline to undertake flying
     AirAsia is looking to start flying from this year-end
with 3-4 planes and will  be headquartered in Chennai. It WILL
focus on providing domestic connectivity to Tier-II and
Tier-III cities.
     The AirAsia joint venture will be the first entry of a
foreign carrier in the domestic aviation sector after the
liberalisation of FDI policy in September last year. 

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