Jet Airways and UAE-based Etihad Airways have
submitted revised documents to the government in a bid to dispel concerns raised by the Foreign Investment Promotion Board (FIPB) over management control of
their proposed venture saying their commercial agreement will not override powers vested with the company's Board.
The Cabinet Committee on Economic Affairs is now likely to take up the deal for approval in the next few weeks, government sources said.
In a joint note submitted to the department of economic affairs (DEA), the two carriers said: "We confirm that the commercial co-operation agreement (CCA) will not undermine the powers of the Board of the company at any time to enter or exit from such commercial arrangement."
Sources confirmed that Naresh Goyal-led Jet has also changed the shareholders agreement, and amended the investment agreement and the articles of association as suggested by FIPB, headed by DEA secretary Arvind Mayaram. Earlier, the FIPB ahd said that Securities and Exchange Board of India would ascertain if control rests with the Jet Board as per the revised CCA.
The CCEA will consider the proposal because the foreign investment involved is higher than Rs 1,200 crore. The FIPB had earlier approved a proposal for Etihad to buy a 24-per cent stake in Jet for Rs 2,058 crore with certain riders on July 29. The riders include Jet seeking government approval before changing the shareholders agreement with Etihad and any arbitration to take place under Indian law instead of English law as proposed earlier.
Courtesy: Mail Today
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