Search the Internet          Tips  Sites: Finance, Investment

Hindujas out of AI bid

The government on Friday rejected the bids of Hindujas for Air India and Indian Airlines while disqualifying Videocon and Sterlite Industries from taking stakes in any of the PSUs slated for privatisation now.

The three companies were disqualified from taking stake in the PSUs on the basis of the guidelines approved by the Cabinet Committee on Divestment for keeping tainted companies out of the privatisation process.

As a result, Tata-Singapore Airline consortium remains the sole bidder for Air India while sale of stake in Indian Airlines would have to be started all over again as both the bidders--Hindujas and Videocon--have been disqualified.

Announcing the decision of the CCD, which was preceded by the meeting of the Cabinet Committee on Security to vet the bidders for Air India and Indian Airlines, Divestment Minister Arun Shourie told reporters that BPL would be allowed to continue in the race for stake in Videsh Sanchar Nigam.

Videocon, BPL and Sterlite were recently indicted and barred from accessing the capital market by the Securities and Exchange Board of India on charges of share price manipulation.

On the issue of continuation of Credit Suisse First Boston, banned by Sebi from entering trading ring, as advisor for privatisation of VSNL, Shourie said the issue was being referred to the Committee of Secretaries for a decision in accordance with the guidelines.

Tell us what you think of this report