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IA divestment: Finalisation of advisors soon

Our Bureau

NEW DELHI, March 30

THE appointment of the global advisors (GA) to chalk out a road map for disinvestment of 51 per cent Government equity in Indian Airlines is likely to be finalised within the next couple of days, even as the announcement to this effect is expected only a fter it is approved by the Union Cabinet.

Senior officials of the Ministry of Civil Aviation told Business Line that the five-member Inter-Ministerial Group (IMG) which was to select the global advisor would hold its meeting either on Friday or Monday.

``The date of the meeting to select the global advisor has not been fixed but it is expected to be held within the next few working days. However, the appointment will take place only after it is been cleared by the Union Cabinet,'' Ministry officials sa id.

Sources said the meeting between the IMG officials and the eight companies which had responded to the advertisements calling for GA, was spread over two days and concluded on March 28 at the Indian Airlines headquarters here.

The global advisor will help in market analysis, preparation of documents and also advise the Government on the specific steps to be taken for implementing the disinvestment.

The Government had, in January, initiated the process of privatisation of the airlines by deciding to offload 51 per cent of its equity in favour of public, financial institutions and a joint venture strategic partner. As per the decision approved by the Cabinet Committee on Disinvestment, the joint venture strategic partner will hold 26 per cent and have a free hand in running of the airline with the approval of the Board of Directors.