Tuesday, May 18, 2021

Cairn's Air India lawsuit may not delay selloff plan

New Delhi: Cairn Energy’s move to sue Air India (AI) in a US court to force recovery of the $1.2-billion international arbitration award it won is unlikely to have any impact on the privatisation of the state-run airline, a top government official said on Monday, asserting that all efforts were being made to stick to the deadline of inviting financial bids by September.

“As such there is no impact on Air India privatisation. The government of India is defending the case and we are confident that it will have no impact on the disinvestment process,” the department of investment and public asset management (Dipam) official, who did not wish to be named, told TOI.

The assessment in the government is that Cairn is seeking to put pressure on the Centre to withdraw the review of the arbitration panel award. Although the government has alerted public sector companies that it is not unduly worried, sources indicated.

On privatisation, the Dipam official acknowledged that there has been some delay in the strategic sales due to the pandemic, which had hurt physical meetings.

18/05/21 Times of India

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