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Air-India divestment seen complete in 10 months

The Indian government hopes to complete the divestment process in state-run international carrier Air-India in 10 months, a senior government official said on Monday.

"If things go right, we should be completing the whole divestment process in Air-India in 10 months," Pradeep Baijal, senior-most bureaucrat in the Department of Divestment told reporters.

The Indian cabinet on Friday approved the sale of 40 per cent of the government's 100 per cent equity to a strategic partner, which could include more than one party.

Of the 40 per cent, the maximum equity a foreign partner can hold is 26 per cent.

"We should be advertising for the appointment for a global adviser in the next two days and finalise the appointment in 45 to 60 days," Baijal said.

The global adviser will be a consortium of financial institutions, merchant bankers and sector experts, he said on the sidelines of a seminar on airports and sea ports.

Air-India, which lost Rs 1.74 billion in the fiscal year to March 1999, has an estimated loss of Rs 897 million in 1999-2000 (April-March).

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