Minister for Civil Aviation Ajit Singh on Monday welcomed the decision of the Foreign investment Promotion Board (FIPB) to clear the Jet-Etihad deal and said that this is a positive move for the civil aviation sector and it will help revive the Indian economy through Foreign investments.
"I believe this deal is very positive for the civil aviation sector as well as the passengers. This deal will increase foreign investment in this country and foreign investors will have the confidence to invest in India which will help the Indian economy," he said.
He further added that many issues were raised by the Opposition parties in the Jet-Etihad deal and called it a 'political gimmick'.
"There were some political issues, since elections are around the corner, opposition to the Jet-Etihal deal was politically motivated, and we were always ready to answer all questions. There is no point discussing all this but I strongly believe the Indian passengers will be benefited by this deal," he added.
Earlier, the Foreign Investment Promotion Board (FIPB) on Monday cleared the Jet-Etihad deal, but with conditions.
According to the revised agreement, Jet-Etihad deal has reduced the number of Etihad directors on the new airline's board to two from three.
The deal still requires the approval of the Cabinet Committee of Economic Affairs (CCEA). There are also some media reports that the deal has to be cleared by the Competition Commission of India (CCI).
The revised proposal seeks to address the concerns of FIPB and market regulator SEBI with regard to 'effective control' after the foreign direct investment, which will be the largest FDI in the aviation space.
According to reports, the expected Rs. 2,058 crore investment could lead to other international airlines investing in India while the passengers will get benefit from Etihad's global network.
