Notwithstanding the opposition, the Government today cleared two crucial proposals, which it believes will have a positive impact on the investment scenario.
The Union Cabinet cleared the exchange of the bilateral air services agreement (ASA) between India and Abu Dhabi, which is likely to give a boost to Etihad Airways’ acquiring a 24 per cent stake in Jet Airways.
The ASA will see the number of seats that airlines from India and Abu Dhabi can operate to either destination jump to 50,000 a week from the current level of about 13,000 seats a week.
This approval is also likely to help the Jet-Etihad deal get the final approval. The Foreign Investment Promotion Board has already given its nod. Now, the Cabinet Committee on Economic Affairs (CCEA) is to give final clearance.
In another major decision, the CCEA cleared the US-based pharmaceutical firm Mylan Inc’s Rs 5,168-crore proposal to acquire Indian generic drugs company Agila Specialties.
While the Parliament committee on civil aviation had raised objections against the Jet-Etihad deal, the Commerce Standing Committee had expressed reservation to the entry of multinational pharma majors into the country through “the backdoor” by buying domestic companies.