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Jet wins key approval for Etihad deal, with conditions

July 29, 2013

New Delhi, Jul 29: The foreign investment regulator gave conditional approval on Monday to a $379 million deal by Abu Dhabi's Etihad Airways to buy a stake in Jet Airways(JET.NS), paving the way for more acquisitions in the domestic aviation sector.jet_eithihad

"We have approved with some conditions," Economic Affairs Secretary Arvind Mayaram told reporters after a meeting of the Foreign Investment Promotion Board (FIPB).

He did not elaborate.

Etihad's purchase of 24 percent of Jet is the first such deal since the government allowed foreign airlines to own up to 49 percent of Indian carriers last September.

It bodes well for more foreign investment into the Indian aviation sector where most carriers are burdened with heavy debts and rack up losses mainly due to the high cost of fuel.

For foreign investors, buying a stake in an Indian carrier grants access to one of the world's fastest growing domestic airline markets which has plenty of untapped potential, especially in services to smaller Indian cities.

Low-cost carrier SpiceJet (SPJT.BO) has received interest from various unidentified potential investors, while fellow budget airlines GoAir and IndiGo have also been identified as potential targets.

The Jet-Etihad deal still has to obtain the approval of the capital markets regulator as well as a ministerial investment panel before the airlines can proceed.

The deal provides Jet with a deep-pocketed global partner as well as cash to help pay off debts. Etihad, which is on an acquisitions drive, will benefit from Jet's Indian connections.

Ahead of Monday's announcement, Jet shares had jumped nearly 3.7 percent, taking their gains in the last two sessions to nearly 22 percent on speculation the deal would be approved.

Effective control

Last month, the FIPB had said it wanted more details on who would be effectively in control of Jet Airways after the deal before making a decision.

The deal won regulatory approval after a revised shareholder agreement decreased Etihad's presence on the board of Jet, according to a document seen by Reuters, addressing government concerns that the Abu Dhabi carrier appeared to be taking control of the Indian airline.

Etihad will now take two seats on the board, which will have up to 12 members, one less than initially planned.

Jet's founder group will appoint four board members and will have the right to nominate the chairman, whereas Etihad will appoint a vice chairman, according to the document.

Opposition politicians have opposed the deal on grounds that a bilateral accord between India and the United Arab Emirates increasing number of seats per week favoured Etihad and also on security concerns.

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News Network
June 6,2020

New Delhi, Jun 6: Military commanders of India and China are scheduled to meet today at Moldo on the Chinese side of the Line of Actual Control (LAC), to discuss the ongoing dispute along the LAC in Eastern Ladakh.

The Commander of the Leh-based 14 Corps of the Indian Army Commander Lieutenant Gen Harinder Singh will meet his Chinese equivalent Maj Gen Liu Lin, who is the commander of South Xinjiang Military Region of Chinese People's Liberation Army (PLA) to address the ongoing tussle in Eastern Ladakh between the two countries over the heavy military build-up by the People's Liberation Army along the LAC there.

The two sides have held close to a dozen rounds of talks since the first week of May when the Chinese sent over 5,000 troops to the LAC.

On Friday, officials of India and China interacted through video-conferencing with the two sides agreeing that they should handle "their differences through peaceful discussion" while respecting each other's sensitivities and concerns and not allowing them to become disputes in accordance with the guidance provided by the leadership.

In the last few days, there has not been any major movement of the People's Liberation Army troops at the multiple sites where it has stationed itself along the LAC opposite Indian forces.

India and China have been locked in a dispute over the heavy military build-up by the People's Liberation Army (PLA) where they have brought in more than 5,000 troops along with the Eastern Ladakh sector.

The Chinese Army's intent to carry out deeper incursions was checked by the Indian security forces by quick deployment. The Chinese have also brought in heavy vehicles with artillery guns and infantry combat vehicles in their rear positions close to the Indian territory.

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Agencies
August 1,2020

Chandigarh, Aug 1: The death toll in the Punjab spurious liquor tragedy rose to 86 on Saturday even as Chief Minister Amarinder Singh suspended seven excise officials and six policemen, officials said.

The government also announced a compensation of Rs 2 lakh for each of the families of the deceased, they said.

Tarn Taran alone accounted for 63 deaths, followed by 12 in Amritsar and 11 in Gurdaspur’s Batala. Till Friday night, the state had reported 39 deaths in the tragedy unfolding since Wednesday night.

According to an official statement, the CM ordered the suspension of seven excise officials, along with six policemen.

Among the suspended officials are two deputy superintendents of police and four station house officers.

Strict action will be taken against any public servant or others found complicit in the case, said the chief minister, describing the police and excise department failure to check the manufacturing and sale of spurious liquor as shameful.

Nobody will be allowed to get away with feeding poison to our people, he added.

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News Network
June 2,2020

New Delhi, Jun 2: Congress leader Rahul Gandhi on Monday took a jibe at Prime Minister Narendra Modi over Moody's Investors Service downgrading India's sovereign rating to the lowest investment rate and said that the global rating agency has rated his handling of the country's economy "a step above junk".

"Moody's has rated Modi's handling of India's economy a step above JUNK. Lack of support to the poor and the MSME sector means the worst is yet to come," the Congress leader tweeted citing a media report on Moody's downgrading the nation.

On Monday, Moody's downgraded the country's rating to "Baa3" from "Baa2". This comes at a time when the government is facing criticism from the Opposition over its handling of the COVID-19 situation and measures to boost the economy.

The government has already announced a stimulus package of Rs 20 lakh crore to deal with the situation.

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