New objections are being raised to the Tata airline venture including the fact that the Tatas have not supplied its list of board members and proof that no foreign airline has a stake in the Government of Singapore Investment Corporation (GIC) and American Insurance Group (AIG), the foreign institutions the Tatas propose to tie up with, official sources said.
Tata sources however said that the ministry had not sought any further information from them and the Tata's have "based on verification" submitted a declaration that the two Fis have no stake from any airlines. Further, Tatas have argued that two names of board members have been given to the ministry and that till the project gets its final nod, the full board composition has not been firmed up. `Once the project is cleared, we will supply all the proof that is needed by the ministry", said a Tata source. AIG in fact has also written to the ministry confirming that no airline has a stake in the company.
Sources pointed out that the Tata's proposed technical agreement with Singapore airlines "is no different from Jet's agreement with Malaysian airlines systems" and is totally in line with policy. Meanwhile, lobbying for and against the project intensified yesterday with certain private airlines and Indian airlines opposing the venture and expressing doubts about the statements veracity. FIPB sources said that they expected the proposal to be deferred, unless the civil aviation ministry submitted its views. While this had not happened till late last evening, sources in FIPB said that it was possible the secretary will attend the meeting and present his ministry's view there.
The union civil aviation minister Ananth Kumar was unavailable for comment since he was away to his constituency in Bangalore and is expected to be there till September 04. In fact, the minister has been out of town almost every time the proposal comes up for any kind of discussion. FIPB sources said that last time around the Tata-SIA proposal had been cleared by FIPB without civil aviation ministry clearance but was sent back by the Cabinet committee on Foreign Investment (CCFI). saying that viewpoint of all relevant ministries has to be included.