Singapore based company, BJETS, which is owned by Balaji Ramamoorthy,
a person of Indian origin planning to pump in nearly $900 million (Rs
3,600 crore) to bring 100 business jets to India for charter and fractional
ownership business. According to sources the company has wanted permission
to buy Business Jets India, a company set up by the Ramamoorthy family,
for its Indian foray.
Interestingly, the Singapore-based company has sought clearance for
100% stake in Business Jets India despite reports about Tatas picking
up a stake in the venture. According to revised foreign direct investment
(FDI) policy guidelines, 74% FDI is allowed in chartered airlines while
NRIs are allowed 100%. BJETS has urged the government to waive the equity
ceiling and allow 100% foreign investment. Industry sources say the
Tata Group is likely to pick up more than 35% stake in the Indian venture
of BJETS.
According to the business plan submitted to the Foreign Investment
Promotion Board (FIPB), BJETS plans to register 100 business jets in
India by 2015 and fund the entire operations through infusion of $900
million out of which $200 million would be equity and $700 million would
be debt.
