kaykay
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NEW DELHI: Abu Dhabi has promised to invest $50 billion in India's cash-hungry infrastructure
at a time when growth in Asia's third-largest
economy has sharply slowed, a newspaper
reported Wednesday. The pledge by Abu Dhabi was the key factor in pushing New Delhi to approve a bilateral deal to increase flights between the two countries, an Indian official told the Indian Express. “A commitment to invest $50 billion in the
infrastructure sector of the country by Abu Dhabi
was a key reason for us to agree to the increase,” a
senior government official, who declined to be
named, said. News of the investment comes just months after the
International Monetary Fund criticised India for not
improving its creaky infrastructure during the
period it experienced growth rates close to double
figures. The IMF said in February that India would likely see
slower growth than expected in 2012/13 at 5.4
per cent and pay the price for failing to ensure
investment in infrastructure kept pace with
economic growth in the previous decade. The plan to increase flights between the UAE and
India is linked to a controversial proposal by the
Abu Dhabi-based Etihad airline to purchase a 24
per cent stake in India's Jet Airways for 20.5 billion
rupees ($342 million). That deal, the largest foreign investment proposal
in India's aviation sector, faces regulatory hurdles,
with many ministries raising objections over the
bilateral increase in flights as well as over control of
Jet after the sale. “The increase was arrived at based on the request
for a hike in entitlements made by various carriers,
including Jet,” the government official said. Many of the new seats - a nearly three-fold jump
from 13,000 to 36,600 seats -- would go to Jet and
Etihad. India's opposition has alleged that the increase in
flights was aimed at clinching the Jet-Etihad sale
and could divert vital business from ailing state-run
flagship Air India. The Jet-Etihad deal, announced in April, marked the
first overseas investment in an existing Indian
carrier since New Delhi eased restrictions to allow
foreign firms to take up to a 49 per cent holding in
the country's airlines. But a request by the Indian prime minister's office
on Monday for the plan to be discussed by cabinet
provoked new worries about the fate of the sale
and sent shares of Jet plunging six per cent.
Abu Dhabi to invest $50bn in India infrastructure: report - DAWN.COM
www.yourmiddleeast.com/business/abu-dhabi-to-invest-50-billion-in-indian-infrastructure_16194
www.france24.com/en/20130703-abu-dhabi-invest-50bn-india-infrastructure
at a time when growth in Asia's third-largest
economy has sharply slowed, a newspaper
reported Wednesday. The pledge by Abu Dhabi was the key factor in pushing New Delhi to approve a bilateral deal to increase flights between the two countries, an Indian official told the Indian Express. “A commitment to invest $50 billion in the
infrastructure sector of the country by Abu Dhabi
was a key reason for us to agree to the increase,” a
senior government official, who declined to be
named, said. News of the investment comes just months after the
International Monetary Fund criticised India for not
improving its creaky infrastructure during the
period it experienced growth rates close to double
figures. The IMF said in February that India would likely see
slower growth than expected in 2012/13 at 5.4
per cent and pay the price for failing to ensure
investment in infrastructure kept pace with
economic growth in the previous decade. The plan to increase flights between the UAE and
India is linked to a controversial proposal by the
Abu Dhabi-based Etihad airline to purchase a 24
per cent stake in India's Jet Airways for 20.5 billion
rupees ($342 million). That deal, the largest foreign investment proposal
in India's aviation sector, faces regulatory hurdles,
with many ministries raising objections over the
bilateral increase in flights as well as over control of
Jet after the sale. “The increase was arrived at based on the request
for a hike in entitlements made by various carriers,
including Jet,” the government official said. Many of the new seats - a nearly three-fold jump
from 13,000 to 36,600 seats -- would go to Jet and
Etihad. India's opposition has alleged that the increase in
flights was aimed at clinching the Jet-Etihad sale
and could divert vital business from ailing state-run
flagship Air India. The Jet-Etihad deal, announced in April, marked the
first overseas investment in an existing Indian
carrier since New Delhi eased restrictions to allow
foreign firms to take up to a 49 per cent holding in
the country's airlines. But a request by the Indian prime minister's office
on Monday for the plan to be discussed by cabinet
provoked new worries about the fate of the sale
and sent shares of Jet plunging six per cent.
Abu Dhabi to invest $50bn in India infrastructure: report - DAWN.COM
www.yourmiddleeast.com/business/abu-dhabi-to-invest-50-billion-in-indian-infrastructure_16194
www.france24.com/en/20130703-abu-dhabi-invest-50bn-india-infrastructure
I have you know they have also invested billions in pakistan to destroy her infrastructure.
