The Foreign Investment Promotion Board (FIPB) will tomorrow take a call on allowing Singapore Airlines to tie up with Tatas for setting up a full-service airline, besides 29 other foreign direct investment applications.
Singapore Airlines (SIA) has approached the FIPB for permission to invest $49 million in the proposed venture with Tata Sons, the holding company of the Tata Group firms.
The proposal was to be taken up last week, but the FIPB meeting was postponed for October 24.
The venture, to be called Tata SIA Airlines Ltd, will have Tata Sons as the majority partner with 51 % stake, while Singapore Airlines will hold 49 %.
The two companies plan to set up the airline with an initial investment of $100 million.
Substantial ownership and effective control of the proposed airline will be with Tatas, according to the proposal before the FIPB, sources said. Singapore Airlines would have a minority representation on the board and “will not be in a position to have ‘de-facto’ control over the Board.”
The FIPB, headed by Economic Affairs Secretary Arvind Mayaram, will also consider eight pharma sector proposals at the meeting. These include, Castleton Investment Ltd, Mauritius – GlaxoSmithKline Pte Ltd, Dastag UK, Perrigo API India Pvt Ltd and Intas Pharmaceuticals.