Indian bidders to get preference in divestment

Indian bidders would be given first preference during divestment in airlines and oil companies, Divestment Minister Arun Shourie has said.

"While divesting stakes in oil companies and airlines, the government will give first preference to Indian bidders as we would like to retain Indian majority in these units," he said.

Shourie said that while divesting a majority stake in any public sector undertaking to a foreign partner, the government would take a decision on a case-to-case basis.

On divestment of Maruti Udyog Limited, he said, "There is no need for government to make automobiles in this liberalised era." He added that they were open to offers from foreign partners while divesting stake in the company.

"In case of war, the country needs airlines and not automobiles and there needs to be a differentiation between automobiles and airlines. Therefore, we would give first preference to Indian bidders in the latter," Shourie added.

On speeding up the process of divestment, the minister said that currently the market conditions were not favourable and assessment was very low. The government would be unable to make any profit in case of a sale, he said.

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