Wednesday, October 09, 2019

Government to soon invite bids for selling entire stake in Air India

New Delhi: The government is all set to invite fresh bids for selling its entire stake in Air India as potential buyers backed out when it invited them to buy a partial stake in the national carrier.

A finance ministry official confirmed the development to livemint and said the expression of interest (EOI) document will be put out anytime now. The official assured that the EOI will be floated this year and the government is aiming to sell its entire stake.

The sale of Air India is crucial for the government as it hopes to meet its divestment target of Rs 1.05 trillion for the year. Furthermore, the stake sale is important for the government as it is likely to face a loss of Rs 1.45 trillion due to the recent adjustment in corporate tax rate.

Meanwhile, the sale of Air India is key for the airline's business as it is currently surviving on a Rs 30,000 crore government bailout and has fallen far behind private players like IndiGo and SpiceJet.

A ministerial panel headed by Union Home Minister Amit Shah had met earlier on September 19 to explore options to take Air India's divestment plan forward. The panel includes Finance Minister Nirmala Sitharaman, Civil Aviation Minister Hardeep Puri and railways and trade minister Piyush Goyol.
09/10/19 India Today
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