Air India disinvestment: Centre expects to receive financial bids by September 15

The financial bids for Air India are likely to be received by September 15 this year, MoS Civil Aviation General (retd.) VK Singh told Lok Sabha on Thursday. Replying to unstarred questions by Congress MP Manish Tewari and TMC parliamentarian Mimi Chakraborty regarding the privatisation and divestment of India's national carrier. In 2018, the Union government attempted to offload a 76% stake and management control in Air India which has a burgeoning debt, but it did not get a single bidder.

On January 27, 2020, it issued a Preliminary Information Memorandum for inviting Expression of Interest for strategic disinvestment of 100% and 50% stake of the Centre in Air India Express Ltd and Air India SATS respectively. Owing to the COVID-19 pandemic, the last date of submission of EOIs was extended to December 14, 2020. Singh stated that a Special Purpose Vehicle has been set up for warehousing non-core assets of Air India Limited.

He added, "Air India has movable as well as immovable assets. With disinvestment of Air India Limited, the movable assets are proposed to be transferred to the new owner of Air India. Immovable assets are being monetised by Air India to offset the debts of Air India Limited." 

Centre unveils disinvestment target

Presenting the Union Budget 2021-22 in February earlier this year, Union Finance Minister Nirmala Sitharaman announced that the disinvestment target for the Fiscal Year 2021-22 is Rs.1.75 lakh crore. As per the Centre's new disinvestment policy, every Public Sector Undertakings in all but 4 strategic sectors will be privatised. She also revealed that the IPO of LIC will be brought soon for which the requisite amendments shall be introduced. 

Moreover, she declared that two more Public Sector Banks apart from IDBI and one General Insurance Company will be taken up for disinvestment in 2021-22 itself. The Union Finance Minister said that the NITI Aayog has been asked to work on the next list of central public sector companies for strategic disinvestment. Additionally, Sitharaman stated that an incentive package of Central funds will be given to the states to encourage the latter to speed up disinvestment. 

Union Finance Minister Nirmala Sitharaman remarked, "Despite COVID-19, we have kept working towards strategic disinvestment. A number of transactions namely BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, Bharat Earth Movers Limited, Pawan Hans, Neelachal Ispat Nigam Limited among others will be completed in 2021-22. Other than IDBI Bank, we propose to take up two Public Sector Banks and one General Insurance Company in the year 2021-22."