The Indian government approved the proposal from Singapore Airlines to commence an aviation venture with Tata Sons through an initial foreign direct investment of USD49 million. Each of the partners would be investing USD100 million each to launch the airline and may launch next year after obtaining all required clearances.
According to India's Economic Affairs Secretary Arvind Mayaram, in an interview after a meeting with the Foreign Investment Promotion Board, "It (Tata-SIA proposal) has been cleared." He added that no riders have been included in the joint venture.
For the new venture to be named Tata SIA Airlines Ltd, Tata Sons would own 51% while Singapore Airlines would own 49%. The said venture also secured approval from the Corporate Affairs Ministry last week.
With the clearance obtained from the Foreign Investment Promotion Board, which is headed by the Economic Affairs Secretary Arvind Mayaram and has the duty of reviewing Foreign District Investments across sectors together with ministers from different government agencies.
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