The Maharaja is finally up for sale. After months of deliberations , the government announced that it plans to sell 76% stake in Air India according to the preliminary information memorandum released today on strategic disinvestment of the national carrier.
According to media reports , the Civil Aviation Ministry has sought Expression of Interest (EoI) for the stake sale in the loss-making carrier and two of its subsidiaries.
According to the memorandum, the government plans to offload 76% equity share capital of the national carrier as well as transfer the management control.
Management or employees can participate directly in the bidding process or by way of forming a consortium, as per the memorandum. Out of Rs 470-billion debt, new owner will bear only Rs 245.76-bn debt.
Rest will be hived off to a Special Purpose Vehicle. Last date for expressing interest is May 14 and shortlisted bidders to be intimated on May 28.
It may be recalled that in In June 2017, the Cabinet Committee on Economic Affairs (CCEA) gave in-principle nod to the strategic disinvestment of the airline, which has a debt burden of over Rs 50,000 crore.
Subsequent to the decision, the Air India Specific Alternative Mechanism (AISAM), headed by Finance Minister Arun Jaitley, was set up to decide on specific issues.