The Hindu : Ministry asked to seek clearance on disinvestment of AI, IA

Online edition of India's National Newspaper
Saturday, Feb 01, 2003

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Ministry asked to seek clearance on disinvestment of AI, IA

By Our Special Correspondent

New Delhi Jan. 31. The Ministry of Civil Aviation has been asked by the Cabinet Committee on Security to seek a "clarification'' from the Department of Disinvestment on whether Air India and Indian Airlines were up for disinvestment.

The CCS has thus put on hold the proposal forwarded by the Ministry of Civil Aviation for the acquisition of 43 Airbus aircraft by Indian Airlines and 17 by Air India.

The Ministry is now approaching the Department of Disinvestment to seek a clarification on the issue, the Minister for Civil Aviation, Shahnawaz Hussain, told mediapersons here today.

By its action, the CCS has indicated that the clearance for purchase of aircraft would hinge on the decision of another arm of the Government on the disinvestment of Air India and Indian Airlines. Both the airlines were to be privatised but the move fell through when the CCS did not clear the proposed investors. After that the Minister had announced that both the airlines would be made healthy before disinvestment could be considered. Subsequently, however, Air India has made profit this year.

Mr. Hussain also indicated that the Ministry was on the verge of sending to the Cabinet its proposal for raising the Delhi and Mumbai airports to world-class standards. He did not elaborate on the route to be adopted as the proposal was to be finalised in collaboration with the Finance Ministry.

But the Minister hinted that the terminal buildings at both the airports would be made up of steel and glass as in Dubai and Kuala Lumpur. He announced the six months extension to the Air India Managing-Director, J.N. Gogoi, who was due to retire today.

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