Jet sends clarification on the QIP issue to government

October 27th, 2010 - 7:21 pm ICT by IANS  

New Delhi , Oct 27 (IANS) Jet Airways Wednesday said it has clarified to the government about its plans to raise $400 million through qualified institutional placement (QIP).

“We have sent a clarification on the QIP issue to the government. We intend to raise $400 million through QIP,” said Naresh Goyal, chairman, Jet Airways on the sidelines of an industry summit.

Earlier, the government had sought clarifications on the airline’s QIP issue.

The company had submitted a proposal to the foreign investment promotion board (FIPB) for raising $400 million through QIP to restructure its debt and for expansion.

The Reserve Bank of India (RBI) recently gave clearance to banks for restructuring airline debts. The sector had accumulated huge debts as air travel business experienced a downfall between 2006 and 2008.

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