The new proprietor of Air India should soak up ₹23,286.5 crore whereas the remainder could be transferred to Air India Assets Holding Ltd, a particular objective automobile.
As Wednesday was the final day for placing within the monetary bid to purchase Air India, the Department of Investment and Public Asset Management is taking the method to the following stage. Tata sons, SpiceJet chairman Ajay Singh are among the many bidders, reviews confirmed.
“Financial bids for Air India disinvestment acquired by Transaction Adviser. Process now strikes to concluding stage,” the secretary, Department of Investment and Public Asset Management, said on Twitter.
The Centre has been trying to find a buyer for Air India and earlier the government was up for selling a 76% stake. Now, the Centre is selling 100% stake of Air India.
The process started in January 2020 got derailed because of the pandemic and this time, the ministry was firm to not postpone the last date of bidding. Tata Group was among the multiple entities that had put in an initial expression of interest in December 2020 for buying Air India.
As of March 1, 2019, Air India’s total debt was ₹60,074 crore. The debt will be transferred to its new owner but the government made it easy for the new owner by inserting a flexibility clause. Going by the new clause, the new owner of Air India will have to absorb ₹23,286.5 crore whereas the remainder could be transferred to Air India Assets Holding Ltd, a particular objective automobile.
This clause was introduced in to make the deal candy for the potential purchaser as Air India has been in losses since 2007.
The airline, which was fashioned by the Tatas as a mail service in 1932, will give the profitable bidder management of 4,400 home and 1,800 worldwide touchdown and parking slots at home airports, in addition to 900 slots at airports abroad. Besides, the bidder would get 100 per cent of the low-cost arm Air India Express and 50 per cent of AISATS, which supplies cargo and floor dealing with companies at main Indian airports.