Rising interests costs, increased competition and operational costs, rise in wage bill and other staff costs, depreciation in rupee value and spurting landing, handling and navigational charges were other reasons for the losses, he said in a written reply.

During 1997-98, Air India had accumulated a loss of Rs 181.01 crore, he said, adding that the airline has initiated marketing efforts to generate additional revenue, reduction in expenditure, network rationalisation and abolishment of posts abroad to boost its performance.

A committee of experts had been set up under finance secretary Vijay Kelkar to comprehensively examine reasons for the loss and suggest strategies to turn around the company.

Replying to a question on divestment of Air India, the minister saidrecommendations of the disinvestment panel were under government's consideration. The civil aviation ministry had also recommended disinvestment of 40 per cent of government's stake in Pawan Hans.

Private power projects may be hampered:

The government on Tuesday admitted in Rajya Sabha that power capacity addition from private sector in the Ninth Plan may not reach anticipated levels owing to the continued financial ill-health of state electricity boards.

Replying to supplementary during question hour, power minister PR Kumaramangalam said fate of private projects was linked to commercial viability of state electricity boards and unless they become financially viable, private sector efforts may not fructify to the desired extent.

The state-owned National Thermal Power Corporation (NTPC) has revised its capacity addition target for the Ninth Plan to 17,000mw, the minister said.

He said Tamil Nadu had a 500mw power shortage at present, which would turn to a situation of surplus by 1999-end whena couple of key projects would be commissioned.

While NTPC is currently preparing a detailed project report for its 1500mw coal-based project at Cheyyoor, another venture with Neyveli Lignite Corporation for a 2000mw plant based on lignite is also progressing, he said.

He said Maharashtra had a peak load shortage of 400mw and a non-peak surplus of 800mw. Once Enron's Dhabol project is commissioned, the state would be in a position to sell power.

Kumaramangalam also said World Bank had sought a fresh environment certificate for NTPC's Talcher-II project before clearing a $2.2-billion loan.

Since the certificate imposed restrictions that were far more rigid than global standards, the government decided to go in for external commercial borrowings to raise funds for the project.

NTPC's good global rating and the fact that Talcher-II is a pit-head project means that there are no doubts about the financial viability of the ECBs, he said.

To another question, the minister said 19 million tonnes of coalper annum has been accorded from the Gopalpur tract of the IB valley coal fields for the 3960mw Hirma thermal power project.

Promoted by Consolidated Electric Asia (India) in Jharsujuda district of Orissa, this would be the largest power project proposed in the country so far in the private sector and the first phase is slated to be commissioned 39 months after the project achieves financial closure.

The minister said of the 2438 urban residential land owners in old Tehri town to be rehabilitated as part of the Tehri dam project, authorities have developed and allotted residential plots to 2400 while the rest is yet to file application seeking allotments.