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AI divestment only at proper price: Shourie

Our Bureau

NEW DELHI, July 3

IN an effort to assuage fears that Air India (AI) is being sold cheap, the Minister for Disinvestment, Mr Arun Shourie, has said that the disinvestment process for the `Maharaja' will not go through if the final offer of the bidders is less than the rese rve price set by the Government.

``The disinvestment process of AI is important not only for the airline, but also for the country. If the evaluation is not correct, then you can take it from me, that the disinvestment process is finished,'' Mr Shourie said.

Mr Shourie along with the Minister for Civil Aviation, Mr Sharad Yadav, and senior officials of the two Ministries was addressing members of the various AI unions on the disinvestment process last week.

Mr Shourie was categorical that the Government could not give an assurance on the question of the bidders being allowed to downsize the company.

In this context, Mr Shourie mentioned that the Hindujas had written to him asking for assurances on downsizing of the labour force. ``The Government cannot give a blank cheque to anybody,'' he said.

The Minister said that the Government had yet not firmed up the reserve price and added that once it is finalised it would not be kept under wraps.

``If the bidder quotes a price which is more than the reserve price, the disinvestment process will go through. But if the price is less, then the process will not go through.''

Mr Shourie said that the Government was well aware that strengthening AI in the post-disinvestment process was very necessary.

During the meeting, the AI unions raised several issues, including the fact that the entire process lacked transparency. Mr Shourie did not agree with the fears of the various unions that AI workers will not have any forum to address their grievances for redressal if they were without jobs in the post-disinvestment period.