NOV 5: Disinvestment Ministry has asked the Civil Aviation Ministry to solve the land agreement dispute between Airports Authority of India (AAI) and Hotel Corporation of India (HCI) to ensure smooth privatisation of both HCI and its parent company Air India.Stating that land dispute of HCI, a subsidiary of Air India, could prove a stumbling block for privatisation of the parent organisation, Department of Disinvestment has sought Civil Aviation Ministry's intervention at the earliest.While the disinvestment process of HCI has already gathered momentum with prospective bidders submitting their Expressions of Interest (EoI), the players who propose to buy stakes in Air India are to submit theirs by November 10.Official sources told PTI that if the land agreement issue was not sorted out soon, it could prove to be a "major stumbling block" for the proposed divestment process not only of HCI but also of Air India.The issue assumes significance in the light of the fact that the government has decided to separately divest its stake in HCI, before completing sale in the latter.The issue is likely to be sorted out once the Civil Aviation Secretary A H Jung returns from his visit to Russia early next week.The land in question is prime property adjoining the Mumbai airport which was given on lease to the HCI and is valued at several hundred crores. Legal battles have also taken place on this contentious matter.HCI runs several hotels and flight kitchens across the country. The government proposes to sell the HCI properties either as a whole or as single units to prospective bidders.Several candidates, including international hotel chains, are learnt to be in the race for picking up majority stake in HCI with the last date for expression of interest having come to an end on Oct 31.The government is expected to shortlist the suitable candidates by mid-November and a final list will be submitted to AI soon after. Merchant bankers Jardine Fleming have been appointed global advisors for the proposed divestment.HCI's prime properties include the Centaur Hotel at Delhi airport, Lake View Hotel at Srinagar, Hokke hotel at Rajgir in Bihar and the two hotels in Mumbai. In addition HCI also owns two flight kitchens Chefair in Mumbai and one at Indira Gandhi International Airport here.
