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PM asks not to delay Air-India divestment

Prime Minister Atal Bihari Vajpayee has asked the divestment ministry not to delay the process of divestment in Air-India, Divestment Minister
Arun Shourie said on Monday.

"The prime minister instructed me to wait only for the finalisation of the shareholders agreement," he told Rajya Sabha during the question hour adding it could be done while a decision could be taken on the two group bidders left in the fray -- one a consortium led by Hindujas and the other a joint venture of Tata and Singapore Airlines.

Earlier, the House witnessed acrimonious scenes over the issue, with some members asking the government to verify the background of the two bidders before awarding the contract.

Shourie, who was replying to supplementaries, said his ministry has prepared the guidelines for qualifications of bidders seeking to acquire stakes in public sector enterprises through the process of divestment.

"All the six bidders (one a consortium of four companies led by the Hinduja and other Tata in joint venture with Singapore Airlines) were referred to the Cabinet Committee on Security presided over by the prime minister," he said.

Rashtriya Janata Dal member Prem Chand Gupta asked the government whether it has taken into account the allegations against the owners of one of the consortium bidders.

Shourie said the member was pointing towards the Hinduja group and said the reply of the Hinduja Brothers vis-a vis the Bofors deal would be looked into while deciding on Air-India divestment.

"Hindujas have been served a chargesheet on the Bofors matter. The show-cause notice have been issued on the matter," he said.

Samajwadi Party member Amar Singh sought to know whether the alleged ULFA links of Tata Tea is being probed as the Tata group is also a bidder for Air-India's shares.

Shourie said the intelligence agencies RAW, IB and CBI have found no substance in these charges.

Insinuations through tapped telephonic conversations could not be taken as an absolute proof for convicting them, the minister said.

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