NEW DELHI Singapore Airlines (SIAL.SI) has won the Foreign Investment Promotion Board's approval to set up a full-service airline in the country in a joint venture with the Tata conglomerate, a senior finance ministry official said.
Economic Affairs Secretary Arvind Mayaram, who was speaking to reporters after a meeting of the FIPB on Thursday, did not give further details.
Singapore Airlines will make an initial investment of $49 million for a 49 percent stake in the joint-venture company, while the Tata Group will initially invest $51 million for the remaining stake, the companies have said.
The JV airline needs a slew of other regulatory approvals before it can start operations.
Mayaram also said the FIPB approved a foreign direct investment proposal by a unit of SingTel (STEL.SI), but did not elaborate.
The SingTel unit wants to increase its stake to 100 percent in a long-distance phone business in India by buying out stakes held by its local minority partners, after the government removed a 74 percent foreign holding cap in telecom companies.
(Reporting by Nigam Prusty; Writing by Devidutta Tripathy; editing by Malini Menon)
Trending On Reuters
Three of India's leading state-run lenders reported a drop in their first quarter net profits, weighed down by rise in provision for bad loans and cooling expectations of a turnaround in the country's dominant but ailing government banking sector. Full Article