AirAsia India venture issues to be sorted out: Montek Singh Ahluwalia
"I don't know what the detailed differences are. I am sure they will be sorted out. If Tatas and an international airline want to set up an Indian airlines as long as the international fellows (hold up to) 49 per cent, they should be allowed to do so," Ahluwalia told reporters here.
"In my view, if Tatas want to set up a company to run an airline within that 49 per cent limit, the intention of policy as far as I know, is quite clearly that they should be allowed to do it," he added.
The Foreign Investment Promotion Board (FIPB) on March 6 cleared the Malaysian budget carrier AirAsia's bid to launch an airline in India by joining hands with Tata Sons.
However, soon after the FIPB nod to the proposal, the Civil Aviation Ministry sought further clarity on the FDI policy in aviation, particularly on whether a foreign airline
could invest in a new venture.
"There are some procedural problems... The notification says (investment by a foreign airline in) an Indian carrier. So they (investor) have to follow the procedure because the Cabinet took a decision, following which the Commerce Ministry issued the notification," Civil Aviation Minister Ajit Singh had said.
AirAsia has announced it would set up a 49:30:21 joint venture