India assures UAE of protecting its investments after concerns emerged over Etihad-Jet deal

ABU DHABI/NEW DELHI: India has assured UAE that it would do its best to protect the country’s investments after concerns emerged over the safety of Etihad’s stake buy in Jet Airways.

UAE-based telecom company Etisalat, which had joint venture with DB Realty, had to shut operations after Supreme Court cancelled licences of 121 telecom operators because of the 2G scam.

Shares of Jet Airways dropped over 7% on Monday following reports Abu Dhabi-based airline Etihad wanted to revise its stake acquisition deal India's biggest private carrier.

The terms of the deal are not clear but a government official had said that Etihad was looking to buy 24% stake in Jet Airways. “I have assured them that within the parameters of our laws, India will protect every investment made by UAE companies. All pending issues will be dealt with fairly and correctly,” commerce and industry minister Anand Sharma said on Monday in Abu Dhabi. Sharma is in Abu Dhabi to attend the inaugural meeting of the UAE-India High Level Task Force on Investments.

Etihad Airways’ Sheikh Hamed bin Zayed al-Nahayan had on Sunday told Reuters that the company’s stake buy in Jet Airways needed to be revised and it was too soon to say when the deal will be closed. According to some reports, Etihad is looking for assurance from the Indian government that its investment does not meet the same fate Etisalat’s.

"I am given to understand that both the airlines are in negotiations and they are keen to build a partnership," Anand Sharma told PTI when quizzed about the deal.

The meeting, co-chaired by Anand Sharma and HH Sheikh Hamed bin Zayed Al Nahyan, chairman of the Abu Dhabi Crown Prince Court, also discussed on channelizing investments in the two countries.

United Arab Emirates will invest $2 billion in India’s infrastructure projects and support the establishment of a strategic oil reserve in India and also in-principle agreed to work on a Bilateral Investment Promotion and Protection Agreement to boost the two-way trade.