The Hindu Business Line : `Elections not to affect Delhi Centaur divestment'

THE ongoing divestment of Air India subsidiary, Centaur hotel Delhi and the flight kitchens at Delhi and Mumbai will not be affected by the Government's decision to hold early general elections.

Official sources told Business Line that by the time the financial bids will be called and examined a new Government should be in place and therefore the divestment process will not be affected. "The entire process of calling for the bids and examining them is likely to take about two months. By then a new Government should be in place, therefore it is unlikely that the process will be stalled or delayed," officials indicated. Sources indicated that legally also there did not seem to be any problem in carrying the process forward at the moment.

The authorities had only late last month sent out the information memorandum to the 26 parties who had submitted the earnest money and signed the confidential agreement with the global advisors assisting the Government in the divestment process.

Meanwhile, the asset valuation report for the properties is now with AI and will be passed on to the bidders after the financial bids are received. The authorities have also created a data room for the bidders, access to which will be allowed after dates are drawn up, sources said. While officials declined to divulge names of the parties which have put in bids, sources indicated that most of the big names in the hospitality industry have shown an interest in taking part in the divestment process.

However, with the Government calling for dissolution of Parliament there were fears that the process may get stalled. Centaur group had five hotels including two in Mumbai, and one each in Delhi, Rajgir and Srinagar.

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