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Decision on A-I selloff next week; IA shelved

A decision on divestment in Air-India will be taken next week after Tata Group chief Ratan Tata communicates his position on the inclusion of a new partner in the bid, Civil Aviation Minister Shahnawaz Hussain said on Monday.

"I met Divestment Minister Arun Shourie this morning and discussed various aspects. A decision on A-I will be taken after Ratan Tata communicates his position," Hussain said in the first-ever comments on divestment in the aviation sector after taking charge of the crucial ministry on September 2.

"The Tatas are still in the race for A-I. They are in search of a new partner. A final decision on the subject will be taken only after meeting with Ratan Tata next week," Hussain, who succeeded Sharad Yadav, said.

Though Hussain did not speculate on the possible partners of Tata for A-I bid, sources said that the sole bidder, after withdrawal of Hindujas from the race, is exploring United Airline and Delta of the US for a partnership.

Virtually ruling out rebidding for IA, where both the shortlisted bidders Hindujas and Videocon have opted out of the race, Hussain said that for the time being, he would concentrate on reviving and strengthening of the airline.

"Divestment of Indian Airlines is not on now. We first want to make the airline competitive and strengthen it. The process will help increase the value of government equity," Hussain said.

Asked about the reported differences between ministries of civil aviation and divestment, amidst reports of which Yadav was shifted to labour ministry, Hussain said, "Shourie and I will work together. During the hour-long meeting, I discussed many issues with him and his response was very positive."

Informing that he would meet Prime Minister Atal Bihari Vajpayee in a day or two, he said, he would strive to take the civil aviation ministry to new highs by enforcing discipline and blocking all the revenue leakages like free loading in the two airline.

Stating that divestment was not his concern and that he would fully co-operate with Shourie on the issue, he said that his priority was to make the PSUs under him fully viable commercially.

"The prime minister has entrusted me with the responsibility. I represent the youth and the minorities in the government. Therefore, I am taking the responsibility very seriously," he said, while asserting that he would not work as a 'dummy minister'.

"I have had wide-ranging experience in my earlier ministries. I will bank on the same to make civil aviation a success story," Hussain, the youngest cabinet minister at 32 years, said when asked about reports that his youth would come in the way of handling civil aviation.

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