Existing guidelines do not bar defaulters from participating in the divestment process, the Rajya Sabha was informed on Monday.
"The ministry's existing guidelines for disqualification of bidders do not list default with respect to repayment obligations by itself as a reason for disqualification," Divestment Minister Arun Shourie said in a written reply.
Asked if IFCI has asked his ministry to disqualify prospective bidders on account of default in payment obligations, Shourie replied in the affirmative.
On divestment of government equity in Air-India and Indian Airlines, Shourie said: "The process was started by the government in June 1999. But all the bidders gradually withdrew. Thereafter, the process has not been re-started."
Shell: The Foreign Investment Promotion Board has rejected Shell India's proposal seeking a clarification on 26 per cent divestment condition in favour of resident Indians, Minister of State for Commerce and Industry Raman Singh said.
"It was clarified to the company that being an entry level condition, the 26 per cent divestment clause will remain applicable," he said.
CCI: The lone public sector cement company, Cement Corporation of India, has been declared sick and the Board for Industrial and Financial Reconstruction has directed for 'sale of CCI as a whole or its plants individually or collectively,' Singh added.