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A-I, IA selloff: Govt extends deadline for technical bids

The government has extended the deadline for receiving technical bids for divesting its majority stake in Air-India and Indian Airlines by about two weeks to February 25 to enable the bidders to finalise their consortium partners and tie other loose ends.

''There was a request from the bidders for extension of the deadline and we have granted them time up to February 25,'' divestment secretary Pradeep Baijal said.

The government had earlier given time up to February 9 for receiving the technical bids.

''Bidders said they needed more time since the whole of Europe was closed in December and better part of January,'' Baijal said.

Many of the bidders, which had cleared the preliminary round, have to finalise their consortium partners since no change would be allowed after receipt of the technical bids.

The divestment secretary, who is pursuing the divestment process with renewed vigour after the government decision to bring down its stake in Videsh Sanchar Nigam Ltd and CMC Ltd to 26 per cent, is confident that the privatisation of the two airlines would be completed by June, 2001.

Meanwhile, different foreign bidders, including Delta Airlines and Air France, are still searching for the domestic partners to complete their consortium. Industry sources said among others, ITC could be one of the suitors for the partnership.

The government had decided in May, 2000 to divest 60 per cent of the equity in Air-India by way of sale of 40 per cent equity in favour of a strategic partner, up to ten per cent to the employees and balance in favour of financial institutions and/or in the market.

It had also decided to divest 51 per cent of the equity in Indian Airlines by way of sale of 26 per cent equity in favour of strategic partner, followed by sale of 25 per cent equity to domestic financial institution, employees and other investors.

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