The beleaguered Jet-Etihad deal finally received the Foreign Investment Promotion Board’s (FIPB) nod with some riders on Monday after Abu Dhabi-based Etihad Airways agreed to leave ‘effective control’ with the Indian promoters.
While Civil Aviation Minister Ajit Singh said that the conditional clearance to the Rs 2,058-crore Jet-Etihad deal would restore investor confidence in India, he also made it clear that the Jet Airways management has to work as per Indian laws.
“They would have their headquarters in Mumbai. They would be governed by Indian Aircraft Rules 1934,”he said. On the hope that the deal may get FIPB clearance, Jet shares surged over 4 per cent. Shares of the company settled 4.22 per cent higher at Rs 412.20 on the BSE. Intra-day, the stock gained 9.96 per cent to Rs 434.90. At the NSE, the scrip ended 2.94 per cent higher at Rs 408. “We have approved (the Jet-Etihad deal) with some conditions,” Economic Affairs Secretary Arvind Mayaram told reporters after a meeting of the FIPB.