PM against delay in AI disinvestment

By Our Special Correspondent

NEW DELHI, AUG. 20. The Prime Minister, Mr. Atal Behari Vajpayee, has asked the Disinvestment Ministry not to delay disinvestment in Air India. ``The Prime Minister has instructed me to wait only for the finalisation of the shareholders agreement,'' the Union Disinvestment Minister, Mr. Arun Shourie, told the Rajya Sabha today during question hour.

The process would not be delayed because of the vetting of the two bidders' credentials. Both processes could go on simultaneously, he suggested after members demanded that the Government must satisfy itself about one of the bidders before awarding the contract.

``The process of disinvestment of Government equity in Air India is being carried out in accordance with the declared policy and totally transparent procedures of the Government. The Government is following the procedures without any undue haste,'' Mr. Shourie said adding that the process had taken a long time and had progressed in consultation with all concerned in a transparent manner.

Although Mr. Shourie was willing to reply to all the queries which came in thick and fast, the Rajya Sabha Chairman, Mr. Krishan Kant, ruled that all auxiliary issues could be dealt with during a special mention discussion slated for later this week.

In the 40 minutes devoted to supplementaries on disinvestment before Mr. Krishan Kant moved on to the next question, Mr. Shourie maintained that all security concerns had been addressed, that a transparent process was followed to select the asset evaluators and that ground handling operations were being privatised to improve the airline's competitiveness.

``All the six companies (four in the consortium led by the Hindujas and the Tata-Singapore Airlines combine) were referred to the Cabinet Committee on Security presided over by the Prime Minister,'' he said.

On why foreign companies were not considered for asset valuation of Air India, the Minister said the committee for selecting asset valuers was broad-based with representation from a large number of Central Government departments and Ministries. Out of 54 asset valuers who were asked to indicate their willingness, 20 responded. Of the 15 who came to make their presentations, the committee recommended V. K. Kharbanda and Associates. The task of valuating Air India's assets abroad has been entrusted to the respective country's embassies and consulate. Air India has properties in London, Singapore, Mauritius, Nairobi, Paris and Hong Kong, he said.

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