New Delhi: BJP leader Subramanian Swamy today moved the Delhi High Court challenging the Centre’s
clearance given to proposed low-cost airline AirAsia India. The Supreme Court had on August 16 asked the senior politician, who had earlier approached the apex court, to move the Delhi High Court with his plea. Swamy’s plea, in which he has questioned the action taken by the government under the policy, is likely to be listed for hearing on Wednesday.
He said Foreign Investment Promotion Board (FIPB) cleared the proposal but the airline does not exist and FIPB cannot give nod to greenfield projects. Malaysia’s largest budget-carrier AirAsia has set up a joint venture with the Tata Group and Telestra Tradeplace to launch the regional airline in India. AirAsia India will be based in Chennai in which the Malaysian carrier will hold a 49 per cent stake. Initially, AirAsia plans to invest USD 30 million in the company. In his PIL, Swamy has challenged the clearance granted to the proposed airline on the ground that according to the policy, foreign investment is only permitted for an existing airline but AirAsia India was not an existing carrier.
He said Foreign Investment Promotion Board (FIPB) cleared the proposal but the airline does not exist and FIPB cannot give nod to greenfield projects. Malaysia’s largest budget-carrier AirAsia has set up a joint venture with the Tata Group and Telestra Tradeplace to launch the regional airline in India. AirAsia India will be based in Chennai in which the Malaysian carrier will hold a 49 per cent stake. Initially, AirAsia plans to invest USD 30 million in the company. In his PIL, Swamy has challenged the clearance granted to the proposed airline on the ground that according to the policy, foreign investment is only permitted for an existing airline but AirAsia India was not an existing carrier.
Source : FP
It is a good thing for a foreign company to invest in Airline industry in India. Any Airline could not get gains and profits upto several years after establishment. For example if Tata and AirAsia Regional airline is established in 2014 - they could assume profits in 2018 or in 2020. Until then they will invest a huge amounts - which creates employment and foreign inflow into India. It is a leverage that India and airline FDI have to experience. By 2020 there will be a lot of changes and the chance for AirAsia to transfer profits from India to other nations is quite very less. I wonder why you opposed Airline FDI in India.
ReplyDeleteu r correct..but, law and rules should be followed by all firms, irrespective of their nature..to others, it may find that Dr Swamy is poking nose everywhere, but there should be someone with a spine, like swamy, to question on breaking laws by joint ventures..India is not a Big Bazar where someone comes, purches and goes..
DeleteAir India and other wasted airlines of India needs a check now and its high time, with so many unemployed, and yet having one of the largest market in the sector, this field can only develop if 'some company with a spine' invest in this sector. The airline definitely has the potential to thrive, which will benefit the govt, aviators and the people, needless to say more tourism, development. The other airlines will definitely face a major challenge, and eventually force the govt to check tax and fuel price.
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