India approves AirAsia's tie-up with Tata group for passenger airlines

New Delhi, Mar 26 (ANI): India on Tuesday said it has cleared Malaysian budget carrier AirAsia's proposal to start a passenger airline in India in partnership with the Tata Group with an investment of Rs 81 crore.

The proposal was cleared by the Foreign Investment Promotion Board (FIPB), Finance Ministry said in a statement.

Talking to reporters, Aviation Minister, Ajit Singh said that there are procedural problems with AirAsia, however they would be taken care of.

"There is no problem with AirAsia and Tata. There are some procedural problems and we will take care of it. Civil aviation ministry is very positive on this development. No, there has been any discussion or any papers submitted or any application by AirAsia," said Singh.

He further said that there are a lot of factors, the Directorate General of Civil Aviation (DCGA) needs to take into consideration and providing timely documents depends on AirAsia.

"See, lot of information is required by DGCA because safety concerns are there. The number of engineers, pilots...and also the home ministry's clearance for any foreigners, directors, so therefore it depends how timely and how fast they provide the information," said Singh.

Malaysia's AirAsia, the largest budget carrier in Asia, plans to launch a regional airline in India with an initial investment of 800 million rupees to cash in on rising demand for domestic air travel among India's expanding middle class. (ANI)