'Auction our government': Subramanian Swamy reacts on Air India sale

Marco Green
January 27, 2020

The Government on Monday announced sale of 100 per cent stake in debt-ridden Air India as it issued the preliminary bid document for the strategic disinvestment.

According to the bid document issued by the Department of Investment and Public Asset Management, March 17 is the last date for submission of bids and qualified bidders will be notified on March 31.

The government has kicked off the disinvestment process of Air India for the second time after it failed to receive a single bid in the first attempt back in 2018. The bidding party will have to bear with only Rs 23,286 crore of the total Rs 60,000 crore debt of Air India.

Air India also has interests in Air India Engineering Services, Air India Air Transport Services, Airline Allied Services and Hotel Corporation of India. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and YouTube, and stay informed about what is happening in the world around you, in real time.

EY is the transaction adviser for Air India disinvestment process.

As for eligibility, the lead member of a consortium can have 26 percent shareholding.

AISATS is an equal joint venture between Air India and Singapore Airlines.

The news agency Press Trust of India reported that various Air India employee unions will meet on Monday to discuss the proposed privatization plan.

For submitting EOIs and for being considered for subsequent qualification, a bidder should have a minimum net worth - the aggregate value of the paid-up equity share capital and all reserves - of Rs 3,500 crore. The state-run airline has been unprofitable for over a decade and is saddled with more than $8 billion in debt. AI, along with AIXL, has about 50.64 per cent share of the worldwide traffic to/ from India among Indian carriers and approximately 18.4 per cent share including global airlines (ex India) as of the second quarter of the 2020 fiscal year (Q2FY20).

The national carrier, which has a debt burden of more than Rs 50,000 crore, has been making loss for long and as part of revival efforts.

Other reports by Click Lancashire

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