Indian energy group Reliance Industries Ltd is in talks with Jet Airways Ltd to buy a 6-7 per cent stake in the private airline, the Mint daily said, citing a source familiar with the development.
The newspaper said on Tuesday Reliance was keen to buy a minority stake as it wanted to be associated with the domestic carrier's proposed cargo airline.
"The mode of Reliance Industries' investment is not finalised. It could be issue of fresh shares or diluting promoter equity," the daily said.
Spokesmen for Reliance, India's leading petrochemical maker and a refiner, and Jet were not immediately available for comment.
For Jet, a stake sale would give it cash at a time when Indian airlines are losing money due to high oil prices.
A top company official told Reuters on Monday Jet planned to invest around $10-$15 million to set up a cargo unit, which would likely be launched in mid-2009 or later that year.