Jet Airways’ plans to sell 24 per cent stake to Abu Dhabi-based Etihad has hit yet another air pocket. The Government is now examining whether NRI owner Naresh Goyal’s share in the airline should be considered as Foreign Direct Investment.
If the Department of Industrial Policy and Promotion decides that the NRI stake has to be counted in the 49 per cent FDI cap for investments in the civil aviation sector, the company will have to come up with a fresh proposal. Under the existing plan, the investment will breach the FDI limit, a DIPP official told Business Line.
“The FDI policy does not clearly say if NRI investments are to be included or excluded in the FDI calculation for the civil aviation sector. The DIPP is examining this and will submit its views to the Foreign Investment Promotion Board,” the official said.
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