Etihad Airways, which has wants to acquire 24 per cent stake in Jet Airways for Rs 2,058 crore, has reportedly agreed to have fewer directors on Jet Airways' board.

Sources familiar with developments at the two carriers revealed that Etihad has agreed to have two directors, instead of previously planned three, on the 14-member board of Jet Airways.

The Jet-Etihad deal has been in the doldrums as the Indian government is concerned over the effective control of the Indian carrier after the implementation of Jet-Etihad deal. The proposed deal was tabled before the Foreign Investment Promotion Board (FIPB) of India on June 14 but the board deferred a decision on the deal, saying it needed more clarity on the deal.

As per the amended agreement submitted by Jet and Etihad with the finance ministry, Etihad and Jet would nominate two and five directors, respectively; while the remaining seven would be independent directors. The new arrangement shows that effective control of Jet Airways will be with the Indian promoters.

The sources also claimed that all the concerns raised by Indian government over the proposed deal had been fixed.

After the completion of the deal, Etihad would own 24 per cent stake in Jet Airways, while the carrier's Indian promoters will own 51 per cent stake. The remaining 25 per cent stake will be with public stakeholders.