Air India divestment timeline extended by 1.5 months
NEW DELHI: The government has extended the timeline for Air India’s divestment by 1.5 months due to the coronavirus crisis. While earlier interested bidders were supposed to submit their expression of interest (EoI) till March 17, then can now do so till April 30.
Under the earlier timeline, qualified bidders were to be announced on March 31, thereby completing a critical part of the divestment in this fiscal. However, now that too shall happen on May 14.
The government is not leaving anything to chance in its second attempt to sell off debt-ridden AI. Last week it had allowed NRIs, who are Indian nationals, to own up to 100% stake in the airline without violating the substantial ownership and effective control (SOEC) norms.
AI’s debt-cum-liabilities combined burden is almost Rs 90,000 crore and aviation minister H S Puri has warned the airline may shut down if not sold off in the second attempt. The government has this time substantially sweetened the sale terms.
