CALCUTTA, NOV 4: The Centre would engage multi-round bidding for Air India (AI) to get the best prices from prospective bidders, according to Minister of state for Disinvestment Arun Shourie."I am trying not to end the price bidding for Air India in the first round. A multiple round bidding will bring the best price for the disinvestment," he said.In the process, the best bid at the end of each round would be made public and taken as the lowest bid acceptable in the next round, Shourie, who is also the MOS for planning and programme implementation, said.Stating that the divestment in the national carrier would take some time to follow the required formalities, he said, "we will try to reduce the time span." After the last date for filing of ‘Expressions of Interests’ by prospective bidders was over on November 10, the ministry would undertake some screening following which the parties would be given access to the data room of the company for details regarding cases against the company.On the divestment of other PSUs, the Minister said the Centre would demerge the companies having multiple units before divesting its stake in them. The procedure would be employed for large companies like IBP, ITDC and Hotel Corporation of India, among others, he said. Questioned on the slow pace of divestment, Shourie said a decision would be taken in the next cabinet committee meeting.The Centre, under the leadership of Prime Minister Vajpayee, was "very committed" to the process but it needed the cooperation from pro-reform states and the trade unions. On the necessity of the divestment in PSUs, he said "the government, both the Centre and the states, cannot keep alive the sick companies now". Referring to the leasing of the Great Eastern Hotel, he said even Marxists, who always criticised the Centre on the issue, were following the same line in their own state.
