Foreign Investment Promotion Board (FIPB) is likely to consider the proposal of Tatas and Singapore Airlines for a new joint venture on October 18 entailing a foreign investment of $49 million.
“The application has been received and would be considered at the next meeting of FIPB on October 18,” an official said.
The FIPB, headed by Economic Affairs Secretary, Arvind Mayaram, is an inter-ministerial panel for approving Foreign Direct Investment (FDI) across sectors.
In their new venture, Tata SIA Airlines Ltd, Tata Sons would hold 51 per cent stake and Singapore Airlines (SIA) 49 per cent.
The proposed venture would also require approvals from agencies like the DGCA and tax department besides other ministries and government departments.
The companies had last week announced a pact to set up a new full-service airline with an initial investment of $100 million.
“High foreign investment inflows would further strengthen the civil aviation sector,” the two partners said in an application to the FIPB, while seeking approval for the $49 million worth FDI by SIA.
Tatas and SIA, which are together attempting an aviation venture for the third time, are also understood to have said that the JV would create significant job opportunities in India.
Tata Sons, the holding company of most of the operating firms of the salt-to-software conglomerate Tata group, has signed an MoU with SIA for the venture.