Govt Plans Management Control In Indian Hands

Under the divestment plans for Air-India (AI), the government plans to retain management control with Indian partners and would cap foreign equity holding including that for foreign airlines at 25 per cent.

Speaking to Business Standard top government officials conformed that the proposal to be put forward to the cabinet committee for disinvestment would not rule out foreign airlines participating in the divestment of AI but management control would be retained by the Indian companies bidding for the carrier.

They said that the proposal for divestment includes 75 per cent to be retain under Indian control, while the balance 25 per cent would be offered to foreign bidders including airlines companies as the strategic partner.

 

The explained that the 75 per cent under Indian control would include government holding as well as the Indian companies who would bid for the company.

Out of the 75 per cent 26 per cent could be offered to the employees as well as financial institutions. The explained that the proposal which would be put forward to the cabinet would sell off at least 51 per cent failing which AI would still remain to be a public sector undertaking.

Civil ministry officails explained that even under the latest civil aviation poliyc, they have not rule foreign airlines pitching for a stke in AI equity. They said that this is unlike the propsal for Indian Airlines whereby it was categorically memtioned that foreign airlines would not be allowed to bid either diretly or in-directly. The government is set to appoint ANZ as the global advisor to chalk out the divestment process for IA.