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Hindujas terms for A-I privatisation rejected

The government said on Saturday that it would not accept bidder's conditions like right to restructure or rightsize Air India after its privatisation and was prepared to go ahead with a single bid provided it was above the reserved price.

In the face of demands made by the Hindujas, Divestment Minister, Arun Shourie, told reporters: "We have received a letter from Srichand Hinduja late Friday night which mentions a demand that a strategic partner should have the right to restructure and rightsize the organisation. We do not have to respond to each condition. The government can't give a blank cheque to any bidder," he said.

Shourie said the government would go ahead with a single bidder, in case the other walked out citing any such condition.

"If the bidder decides to walk on the grounds that strategic partner should be granted such rights, then the government would go ahead with the process even if a single bidder is left," he said.

The minister, however, pointed out that if the single bid was lower than the reserve price, "the process will not go ahead. The government would then either call for rebids or consider other options."

The Cabinet Committee on Divestment's meeting scheduled for July 4, to approve the draft shareholders agreement among others, would be preceded by that of the Cabinet Committee on Security for clearance of shortlisted bidders.

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