August 22, 2008

ETA Star to invest USD 1 billion in Indian port and aviation sector

Dubai based ETA Star is planning to invest more than USD 1 billion in sectors such as ports and aviation in India. The proposed investment will be in addition to other combined investments committed by the company in the power and real estate sectors, which total more than INR 9,000 crore.

The group is likely to invest INR 4,000 to INR 4,500 crore in the development of a port in Tamil Nadu and is final stages of selecting the required site. The project will be executed through a special purpose vehicle ETA Star Ports, which is likely to be formed by August 2008.

ETA will also start commercial flight operations in southern India in June to July 2008 and is awaiting a mandate from the Indian government on rules for international operations. The airline aims to first launch itself as a regional carrier in the southern market, connecting cities such as Visakhapatanam, Coimbatore and Madurai as also metros such as Chennai, Bangalore, Kochi and Hyderabad.