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CCD defers decision on Air-India divestment

The Cabinet Committee on Divestment on Wednesday deferred the long-awaited decision on strategic sale of Air-India as the necessary guidelines for barring tainted companies from bidding were yet to be finalised.

Divestment Minister Arun Shourie told reporters after a two-and-a-half-hour inconclusive meeting of the CCD that guidelines were likely to be finalised by Friday and Air-India's divestment would be taken up thereafter.

He said the CCD has cleared six of the nine divestment proposals on Wednesday and the remaining three would be taken up later.

He did not indicate which of the six public sector undertakings were approved.

Among the nine PSUs on Wednesday's agenda were telecom major VSNL, oil company IBP, HTL and CMC.

Asked if Hinduja's bid for Air-India was discussed, Shourie said: "No individual case was taken up as the Cabinet desired that the guidelines should be in place first before discussing the issue."

The minister said that the draft guidelines had been vetted by law ministry and they were meant to debar tainted companies.

Government has decided to offload 40 per cent stake in national air carrier Air-India to a strategic partner with a cap of 26 per cent on foreign investment.

Tata-Singapore Airlines combine and Hindujas are in the race.

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