COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

A-I, IA disinvestment to be completed by 2000, assures minister

Civil Aviation Minister Ananth Kumar today expressed confidence that the disinvestment process of Air-India and Indian Airlines would be completed in about a year's time.

Talking to newsmen in Bangalore, he said he had already cleared the proposal of disinvesting 51 per cent from IA and the issue would now be discussed by the Cabinet Committee on Economic Affairs.

While ten to 11 per cent of the holdings would be provided to the employees of IA, the remaining 40 per cent would be offered to a strategic partner to improve the functioning of the airlines to make it on par with a foreign airline, he added.

On the disinvestment process pertaining to Air-India and Pawan Hans Helicopter Limited, Kumar said the ministry had accepted the Disinvestment Commission's proposals .

The ministry had already called for global tenders for appointing consultants for disinvestment from Hotel Corporation of India which manages the Centaur Hotels, he added.

Kumar said more than Rs 10 billion was needed to bring Air-India into a good shape so that it could run profitably utilising the goodwill it enjoyed the world over.

He said Indian Airlines had made a profit of Rs 470 million last year and despite the recession in several parts of the world, the same profitability was expected to be maintained this year also.

On the proposed international airport in Bangalore, he said the ministry had in principle given its approval for the Rs 25 billion project mooted by the Tatas-led consortium. It was now left for the state government to meet Tata group head Ratan Tata and convince him to carry out a re-feasibility study.

Referring to the recent tripartite meeting held with Defence Minister George Fernandes, Karnataka Chief Minister J H Patel and himself at New Delhi on the issue, he said the contentious issues have been sorted out.

Kumar said the proposal would be a joint venture with the state government and the Airport Authority of India contributing 13 per cent each while the rest would be borne by the consortium.

UNI