Air India deal may be further sweetened

The government may ease some of the conditions for potential bidders of Air India in a renewed effort to privatise the loss-making national carrier, which is crucial to achieving its ambitious divestment goal for this fiscal.

The revised bidding document for the airline, which is expected by this month-end, could either allow potential bidders to value Air India purely on its assets or substantially reduce the Rs 23,286 crore debt currently required to be absorbed by a successful bidder.

“At present, the debt offered is nearly equal to the value of Air India’s assets. So the bidding is supposed to take place over and above Rs 23,286 crore.