Sunday, March 18, 2018

Air India sale modalities to be announced next week

New Delhi: A notification announcing modalities for sale of loss-making national carrier Air India is likely to be announced next week, followed by release of Expression of Interest (EoI) document in second week of April next month.
"The process of privatisation of Air India and five of its subsidiaries is gradually shaping up and the government is likely to announce notification regarding sale modalities by next week,” Civil Aviation Ministry sources said.
Air India has been struggling on the back of operational inefficiencies, high employee cost and high level of net debt (Rs 54,715 crore) incurring huge losses for long.
The provatisation process also includes five of Air India’s subsidiaries - Air India Engineering Services, Air India Air Transport Services, Air India Charter Limited, Airline Allied Services and Hotel Corporation of India.
The government is likely to retain 24 percent stake in Air India, the notification may also provide clarity on debt to be transferred to a Special Purpose Vehicle (SPV), the source said.
The process began speeding up soon after Commerce Minster Mr Suresh Prabhu took additional charge of the Ministry last week following resignation of Mr G Ganpati Raju.
Earlier, the government had allowed 49 percent foreign investment in Air India.
To expedite the disinvestment process, the government is expected to widen the universe of bidders thereby making disinvestment easier and faster.
18/03/16 UNI