In the latest development in the Jet-Etihad deal, CNBC-TV18's Sumit Jha and Kritika Saxena, quoting top government sources, report that Etihad has expressed concerns to the government regarding the safety of its investments. Etihad fears that its investment may meet a fate similar to Etisalat, the UAE-based telecom company which lost over Rs 3,000 crore in the 2G fiasco.
The Etihad management has raised concerns regarding the safety of its investment and wants an assurance from the government of India that the investment will be protected.
Commerce minister Anand Sharma is on tour in the Middle-East and he is slated to meet Etihad officials as well. The minister's visit to the region is to boost the bilateral investment protection agreement process between India and the UAE.
Sources indicate that Jet-Etihad deal is likely to be delayed till an assurance from the government of India regarding its commitment to protect foreign investment is announced.
Reports in the media on Sunday suggested that the Etihad chairman also planned to revise some of the features of the deal and this indicates that the deal will be further delayed before it is concluded.
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