FinMin to decide on Jet-Etihad, Telenor FDI plans on Tuesday

The Finance Ministry on Tuesday will take a call on the Rs 2,000 crore Jet-Etihad deal --the largest foreign investment in the Indian aviation sector -- and the FDI proposal of Norway's Telenor, among others.

 

The Foreign Investment Promotion Board (FIPB), headed by Economic Affairs Secretary Arvind Mayaram, will also take up 28 other FDI proposals including that of Multi Commodity Exchange (MCX).

 

While Jet Airways plans to sell 24% stake to Abu Dhabi-based Etihad for about Rs 2,058 crore, Telenor is seeking government approval to hike stake by 25% in its domestic subsidiary Telewings to 74%.

 

However, it could not be immediately ascertained the amount of FDI expected to come through the Telenor transaction.

 

In March, FIPB had deferred decision on the proposal.

 

Last week, Telenor Group President and CEO Jon Fredrik Baksaas met Commerce and Industry Minister Anand Sharma in Myanmar. Sharma had assured him that the pending investment issues would be expedited with the relevant authorities.

 

Jet-Etihad deal assumes immense significance in the backdrop of the government looking to attract more foreign investments into the country. Also, the proposal comes after foreign carriers were allowed to pick up stakes in domestic airlines.

 

In March, the FIPB had cleared the Rs 81 crore investment proposal of AirAsia to set up a JV airline company with Tata Sons and another partner.

 

MCX (Multi Commodity Exchange of India) is seeking post facto approval for FDI received before issuance of Press Note 2 of 2008. The Press Note detailed guidelines of foreign investment in commodity exchanges.

 

Other proposals on FIPB agenda include that of Alliance Insurance Brokers, Muthoot Finance Ltd and ICICI Venture Funds Management Company.