AirAsia-Tata Sons JV nod: A small comma to help Ratan Tata realise his dream

NEW DELHI: A small comma was what led to the FIPB approving AirAsia-Tata Sons joint venture, a decision that will help Ratan Tata realise his dream of an airline in the country. The FIPB took coginsance of the fact that the Press Note 6 that allows investment not just in the capital of Indian companies but also operating scheduled and non-scheduled air transport services.

A comma that separates the two phrases changed the underlying philosophy of the FDI policy.

Foreign airlines are also, henceforth, allowed to invest, in the capital of Indian companies(,) operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid-up capital, the policy says.

"Its been cleared. It's as per the press note 6 of the DIPP. It is very clear, its as per the policy. Upto 49% FDI is allowed. Rs 80 crores or so is the initial (investment). Once they are approved now they will have to take the necessary licenses etc from the dgca. They can start operating now once they get the license" a finance ministry official told ET.