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IA sell-off terms likely to be eased

The ministries of divestment and civil aviation are likely to consider liberalising the terms for divestment of Indian Airlines for a better response in the face of imminent disqualification of two bidders - the Hindujas and Videocon.

The two bidders are unlikely to qualify as per the guidelines notified by the government on Friday, sources said, adding that the divestment process of IA may have to be started afresh.

A final decision will be taken on the matter after receiving explanations from the Hindujas and Videocon on the show-cause notices, which are likely to be issued next week, official sources said.

Divestment ministry officials are expected to meet civil aviation officials in the course of the next few weeks to consider the option of liberalising the terms so that more corporates could consider taking stakes in the airline.

Officials said on condition of anonymity that the two ministries could also explore the possibility of allowing minority participation of foreign airlines in the bids while discussing the future course of action for the domestic airline.

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