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A-I to get only Rs 100 to hive off HCI as separate firm

The first ever divestment in the civil aviation sector appears certain with government starting the process of hiving off Hotel Corporation of India from the parent company Air-India and entrusting its sale process to the Department of Divestment.

The Cabinet Committee of Divestment decided on July 4 to convert HCI into an 'independent company directly under the active control of ministry of civil aviation for which a consideration of Rs 100 would be paid to Air-India," authoritative sources said.

While there is no bidder left in the race for Indian Airlines -- with both the shortlisted bidders Hindujas and Videocon withdrawing -- the Tatas, the sole bidder for Air-India, are yet to communicate their decision on the bid after withdrawal of their consortium partner Singapore Airlines from the race.

When contacted, Civil Aviation Minister Shahnawaz Hussain said that he had written to Arun Shourie, his counterpart in the divestment ministry, saying that "the process of divestment (of HCI) should be carried out under the supervision of the Department of Divestment as it will be an independent company delinked from Air-India."

With this the issue of HCI that became the bone of contention for divestment of Air-India between the two ministries, prior to departure of Sharad Yadav from civil aviation to labour, has been resolved.

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