In wake of concerns raised by some ministries over the Jet-Etihad deal, government on Thursday said the two companies have revised their agreement and the proposal is currently being prepared for submission.
“Addressing the concerns, the applicant companies have revised their agreement.
“Comments of SEBI have also been received by Foreign Investment Promotion Board (FIPB) and the proposal was considered by it at a meeting held on July 29 and the same is currently being prepared for submission to the competent authority,” Civil Aviation Minister Ajit Singh said.
He said this in a written reply in Lok Sabha.
The Minister said that during the consideration of the proposal on June 14, some Ministries had raised certain concerns on the issue of “effective control” over the Jet Airways post allotment of its 24 per cent share to Etihad Airways.
These concerns were referred to SEBI and also to the applicant companies by FIPB.
Jet Airway and Etihad Airways had submitted a proposal to FIPB for preferential allotment of 24 per cent paid up equity share of Jet Airways to Etihad.
According to the Minister, the proposed FDI is within the prescribed limits under the FDI policy of the government for the civil aviation sector.