Talking to mediapersons at the Chennai airport, Ananth Kumar, clarified that Tata Airlines had withdrawn from the project when the Government was looking into it and had not rejected the proposal. ``What can I do if they withdraw? My counter is always open,'' he said, adding that the Government had thrown open all sectors for international participation.

Asked whether it was proper for the Government not to take a decision on the Tata Airlines proposal, Kumar said the proposal had been awaiting approval from three previous Central governments. The minister said that the Union Government had to work according to rules and regulations. ``The policy is crystal clear, transparent and above board,'' he said.

The minister said the crux of the guidelines issued by the Government was, it would not allow foreign equity participation - ``either direct or indirect or surreptitious'' - in domestic airlines sector from any foreign companies. ``We are only vetting all applications based on this,'' he said. ```If an applicant (Tata Airlines) did not provide whole details about foreign equity participation, especially when the applicant said he had entered into a technical agreement with his proposed foreign partners, then we have to study what they are trying to do,'' Ananth Kumar said.

``The government will allow 40 per cent equity participation from foreign institutional investors and Non-Resident Indians, but not from foreign airlines,'' he said. When asked about the war between Jet Airways and Tata Airlines, the minister said neither he nor the government was concerned about corporate wars.

The minister refuted the suggestion that the withdrawal of its proposal by Tata Airlines would send wrong signals to investors and said confidence among investors had grown up, as could be witnessed from the Resurgent India Bond which had mopped up US $ 4.19 billion. Ananth Kumar said the Government had stated that 74 per cent investment was welcome in airport infrastructure from FIIs. ``In special cases, we are even ready to allow 100 per cent foreign equity participation,'' he said.