BBC Homepage World Service Education
BBC Homepagelow graphics version | feedback | help
BBC News Online
 You are in: World: South Asia
Front Page 
World 
Africa 
Americas 
Asia-Pacific 
Europe 
Middle East 
South Asia 
-------------
From Our Own Correspondent 
-------------
Letter From America 
UK 
UK Politics 
Business 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 
Friday, 26 May, 2000, 15:17 GMT 16:17 UK
Privatisation plans for Air India
Air India plane
There will be a limit on foreign investment

In India, up to 60% of the government-run international carrier, Air India, is being privatised.

The anouncement was made today in Delhi by the Minister for Information, Broadcasting and Disinvestment, Arun Jaitley.

He said that of the 60% which would be offered to the private sector, up to 40% would be sold to strategic partners.

This will include an upper limit of 26% investment by foreign companies.

He said that up to 10% would to offered to Air India employees with the remaining 10% going to domestic financial institutions and investors.

The announcement ends a long-running wrangle between the ministries of Disinvestment and Civil Aviation.

Mr Jaitley and the Civil Aviation Minister, Sharad Yadav, have differed sharply over opening up the ailing public sector company, especially with regard to issuing up to 26% to strategic partners including foreign companies.

Air India has accumulated losses amounting to about $240m dollars over the past five years, and last March, announced premature retirement plans for more than 60% of its employees.

Search BBC News Online

Advanced search options
Launch console
BBC RADIO NEWS
BBC ONE TV NEWS
WORLD NEWS SUMMARY
PROGRAMMES GUIDE
Links to more South Asia stories are at the foot of the page.


E-mail this story to a friend

Links to more South Asia stories