New Delhi: he government will go for a thorough scan of the credentials of bidders for Air India as it wants to ensure that ownership and effective management control stays with an Indian entity, despite foreign airlines being allowed to hold up to 49% in the national carrier post-disinvestment.
The move is aimed at addressing concerns over day-today management of some of the private carriers with foreign airlines as partners where shareholders were not really with the Indian owners despite the government rules mandating so.
Last week, the cabinet allowed foreign airlines to hold up to 49% stake in AI in an exercise aimed at bringing the overseas investment rules for the bleeding public sector carrier at par with other airlines.
The government and its advisers for the stake sale are expected to pour over the shareholders' agreement and other details to ensure that the board and key management personnel are appointed by the Indian partner, sources indicated.
Although the extent of disinvestment is yet to be firmed up, sources told TOIthat the government will ensure that substantial ownership, which will be 51% if not more, is retained with Indian entities and effective control in managing the day-to-day operations also remain with the domestic partner. This indicates to the possibility of the government exiting AI as a smaller stake sale will mean that the foreign partner becomes the largest shareholder.
16/01/18 Sidhartha/Times of India
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The move is aimed at addressing concerns over day-today management of some of the private carriers with foreign airlines as partners where shareholders were not really with the Indian owners despite the government rules mandating so.
Last week, the cabinet allowed foreign airlines to hold up to 49% stake in AI in an exercise aimed at bringing the overseas investment rules for the bleeding public sector carrier at par with other airlines.
The government and its advisers for the stake sale are expected to pour over the shareholders' agreement and other details to ensure that the board and key management personnel are appointed by the Indian partner, sources indicated.
Although the extent of disinvestment is yet to be firmed up, sources told TOIthat the government will ensure that substantial ownership, which will be 51% if not more, is retained with Indian entities and effective control in managing the day-to-day operations also remain with the domestic partner. This indicates to the possibility of the government exiting AI as a smaller stake sale will mean that the foreign partner becomes the largest shareholder.
16/01/18 Sidhartha/Times of India
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