State-owned Jawaharlal Nehru Port Trust (JNPT), India’s biggest container gateway, has placed a more than Rs 1,000-crore bid to buy debt-ridden Air India’s iconic 23-storey tower located at Mumbai’s Marine Drive in Nariman Point, facing the Arabian Sea.
JNPT’s bid was higher than that of state-run insurer, Life Insurance Corporation of India (LIC), the only other bidder to participate in the auction, a top government official said, asking not to be named, because the bid results have not been made public yet.
The bid, though, is yet to be finalised because JNPT’s price quotation is below the reserve price set by the cash-strapped national carrier, and the transaction needs a no-objection certificate (NoC) from the Maharashtra government, which had leased the land for the tower many years ago.
“There were only two bids and JNPT was the highest bidder. The state government did not bid, after showing initial interest. The land is leased by the state government. So, legally, it requires a NoC from it… that’s the only thing, but they can’t bid now. Also, Air India had high expectations and had set a reserve price in the range of Rs 1,600 crore. JNPT’s bid is lower than that. Hence, Air India can take its own call or ask JNPT to raise the price,” the government official said, adding that Air India has kept the whole process confidential.
22/02/19 P Manoj/Business Line
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JNPT’s bid was higher than that of state-run insurer, Life Insurance Corporation of India (LIC), the only other bidder to participate in the auction, a top government official said, asking not to be named, because the bid results have not been made public yet.
The bid, though, is yet to be finalised because JNPT’s price quotation is below the reserve price set by the cash-strapped national carrier, and the transaction needs a no-objection certificate (NoC) from the Maharashtra government, which had leased the land for the tower many years ago.
“There were only two bids and JNPT was the highest bidder. The state government did not bid, after showing initial interest. The land is leased by the state government. So, legally, it requires a NoC from it… that’s the only thing, but they can’t bid now. Also, Air India had high expectations and had set a reserve price in the range of Rs 1,600 crore. JNPT’s bid is lower than that. Hence, Air India can take its own call or ask JNPT to raise the price,” the government official said, adding that Air India has kept the whole process confidential.
22/02/19 P Manoj/Business Line
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