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India scrutinising bids for domestic airline sell-off

India is scrutinising private sector bids for a 26 per cent stake in state-owned domestic carrier Indian Airlines, a spokesman for the airline said Tuesday.

"There are four or five bids for Indian Airlines," spokesman Robin Pathak said.

Among the private companies bidding are two well known Indian corporate houses -- the Tatas and Videocon.

"We have submitted an Expression of Interest for the airline after which the detailed bid will be made," a spokesman for Videocon said.

"We will be tying up with an international airline," he added.

There were a couple of lesser known but "professional" companies who have also put in bids, Pathak said, adding that the Department of Divestment was looking into all the applications.

"Economic viability" and "known expertise" would be the factors kept in mind while choosing a strategic partner, the airline spokesman said.

The invitation of bids is part of the government's divestment programme for the current fiscal year, to meet the target of Rs 100 billion ($2.2 billion).

As per the programme, Indian Airlines's strategic partner would pick up 26 per cent of equity, while another 25 per cent would be offered to the employees, the public and financial institutions.

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