FIPB clearance reflects govt investor friendly policies: Tata
Ratan Tata today said FIPB
clearance to the airline venture
between Malaysia
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
"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
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
operations.
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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