The Centre on Monday gave a conditional go-ahead to the controversial $900-million Jet-Etihad deal, clearing the deck for the biggest FDI in Indian aviation, Times of India reported. The Foreign Investment Promotion Board (FIPB) has asked the two airlines to drop the clause that their shareholders' agreement will be governed by British law and instead put it under Indian laws.
Once the amended deal is cleared by the Cabinet Committee on Economic Affairs, Etihad can pick up 24 per cent stake in Jet for $379 million. The deal turned controversial after the aviation ministry gave away additional flying rights of 37,000 seats to Abu Dhabi in April, just hours after Jet and Etihad announced their tie-up. A number of lawmakers opposed the deal.
Read the full report here