New Delhi, Feb 21 (PTI) Mahindra & Mahindra Vice-ChairmanAnand Mahindra today offered to resign from the board ofNACIL that runs state-owned carrier Air India, citing conflictof interest.
In a letter to Civil Aviation Minister Vayalar Ravi, hesought permission to step down from the board of NationalAviation Company of India Ltd (NACIL).
"The recently concluded Aero-India 2011 at Bangalore hasthrown up business opportunities for my company Mahindra &Mahindra Ltd, which was a potential conflict of interest andthereby throw up questions of good board practice. Hence myrequest," the letter said.
In March 2010, Mahindra along with Air Chief Marshal FaliH Major (Retd), FICCI Secretary General Amit Mitra, AmbujaRealty Group Chairman Harsh Neotia were inducted asindependent directors to the NACIL board.
Mahindra said his firm had fruitful discussions withinternational aerospace corporations, encouraging the group toaspire to become a leading component player.
"We are developing the capability to supply componentsto the major suppliers from where Air India sources itsaircraft.
"In view of this development and the favourable businessprospects, which recently emerged for M&M''s aeronauticalbusiness in Bangalore, I feel that my continuing as a directorof NACIL would not be in accordance with the highest standardsof corporate governance," Mahindra wrote.
In 2009, M&M had forayed into the aerospace business byacquiring 75.1 per cent stake each in two Australian aerospacefirms -- Aerostaff Australia and Gippsland Aeronautics -- forRs 175 crore and planned to make aircraft and alliedcomponents to service the global market.