Stubby1,
Yes, the initial captains are expats. However, I do not believe that they will have any trouble finding Indian captains. First they are recruiting senior ATR FO's and promising them command in 500 hours. Second I believe that there are plenty of First Officers ready for 737 upgrade so any military pilot coming to Spicejet now may very well be looking at a long wait for a jet command. Why not take a 6-8 month upgrade on the Q400? Now if you are sitting on a 737 type and PIC time they would love to hear from you. As for basing, many of the newly minted Spicejet Captains and recently hired FO's are not getting the bases that they want. I think the days of getting the base of your choice are pretty well over now.
Jet