NEW DELHI: Air privatization could spill over into next fiscal year as the disallowance process is unlikely to end in the remaining few over three months of 2020-21, said an officer.
Tata Group is a US-based salt-to-software conglomerate Interups Inc. funding. they were among “numerous” groups that submitted initial bids last week for the purchase of an Air India loss carrier.
A group of more than 200 Air India employees submitted a declaration of interest (EoI) for the carrier in partnership with Interups at the closing date of 14 December.
“The Transfer Adviser will notify the qualified applicants by January 6 after which the applicants will have access to Air India’s virtual data room (VDR),” an official said.
The installment purchase agreement will be shared with the applicants, after which financial applications would be invited, the official said.
“The matter will not end immediately in the next round as we expect applicants to have a lot of questions once they have access to VDR and before submitting their financial applications,” the council said. officer to PTI.
The government is selling the entire 100 per cent stake in Air India that has been at a loss ever since it was merged in 2007 with domestic operator Indian Airlines.
The betting process has been delayed due to the COVID-19 pandemic and the government has extended the deadline by five times for initial applications for the national carrier.
The airline, which began as a postal carrier in 1932, will give the successful bidder control of 4,400 domestic and 1,800 international slots for landing and parking at domestic airports, as well as 900 slots. at overseas airports.
In addition, the bidder would receive 100 percent of the arm at a low price Air India Express and 50 per cent of AISATS, which provides goods and ground handling services at major Indian airports.
With previous attempts from 2017 failing any major interest, the government this time had sweetened the deal by giving freedom to lawyers who were able to decide what the debts are. ‘at the airline they want to take part in the deal.
Previously, the claimants had to take over a total debt of crore Rs 60,074.
Secretary Tuhin, Department for Public Fund Investment and Management (DIPAM) Kanta Pandey It has previously been stated that prospective investors in Air India have given feedback that the debt should not be set at interest rate (EoI) due to the uncertainty created COVID-19 in aviation department.
Therefore, in late October the government decided to make bids for Air India based on enterprise value, which includes company market capitalization, short-term and long-term debt as well as any cash on record. company balance sheet.
In the current crown, the government has set a maximum Rs 2.10 lakh crore target from reinvestment. The target includes Rs 1.20 lakh crore from the sale of shares of major public sector enterprises (CPSEs) and Rs 90,000 crore from the sale of shares in public sector banks and financial institutions, including behemoth listing LIC insurance.
So far this fiscal, Rs 11,006 crore has been invested through retail interest in CPSEn.
Following their unsuccessful bid to sell the loss carrier in 2018, the government in January 2020 resumed the replacement process and invited bids for 100 per cent of its equity to be redeemed. sales in the state-owned airline, including Air India’s 100 per cent stake in AI Express and 50 per cent SATS Air Airport Services SATS (AISATS)
In 2018, the government had offered to sell the 76 per cent stake in the airline.