Updated 29 December 2020 at 18:28 IST
First stage of Air India disinvestment complete; qualified bidders to be revealed on Jan 5
In the next process, eligible bidders for Air India would be asked for 'Request for proposal', which would entail their financial information.
- Republic Business
- 2 min read
The Union Civil Ministry on Tuesday announced that the first process of Air India's disinvestment had been completed and the announcement of qualified bidders would be made on January 5, 2021. This comes weeks after Air India informed that Tata Group and US-based fund Interups Inc were among "multiple" entities in preliminary bids for buying Air India.
"The strategic disinvestment of Air India is a transparent two-step process. The first process is the submission of 'Expression of Interest', which is bidders showing interest in Air India. It is a confidential process and as of now, multiple 'Expression of Interest' have been received. Their scrutiny process is going on. It will be completed by January 5 and we will have eligible bidders," said Pradeep Singh Kharola, Secretary, Civil Aviation Ministry.
The official added that in the next process, eligible bidders would be asked for a 'Request for proposal', which would entail their financial information. The shortlisted bidders will be allowed 90 days to get the full information.
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"In the next step, eligible bidders will be asked for 'Request for proposal' which is nothing but financial information of bidders. We are heading towards the second stage and the first stage is completed. The bidders who will be shortlisted after the due criteria will be given time of 90 days to get full information and we will also check their files," he added.
Air India's disinvestment
The Centre had in May 2018, made its first attempt to sell a 76 percent stake in the distressed carrier but had failed to attract suitors who were largely uncomfortable with the government retaining a 24 percent stake in the airlines. Additionally, the investors were also required to stay invested for at least 3 years. This was another cause of concern since the national carrier's debts had mounted to a whopping Rs 33,000 crore. The government rectified these terms in March 2020 and has now offered a 100% stake in the national carrier to potential bidders besides relaxing a substantial part of the airline's debt.
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(With Agency Inputs)
Published By : Ananya Varma
Published On: 29 December 2020 at 18:28 IST