Aborted Air India privatisation symptomatic of bigger problems

The flaws in New Delhi’s ambitious plans to privatise major parts of Indian industry have been exposed by the botched attempt to sell Air India, experts have warned, as ministers admit it will be years before the airline is sold. Ministers and officials have said there were no immediate plans to offload the highly-indebted carrier, following the govt’s failure to attract a single potential bidder for the company. And experts warn the problems that derailed that process were likely to hinder other attempts to sell high-profile companies, whether in the oil, military or banking sectors. Ministers have blamed “market conditions” for the failure, referring largely to rising oil prices, which have knocked the finances of India’s private airlines and made them wary of such a major investment. <br/>