Another key change is that an entity can put in a bid on the 'strength of its parent', which means that an entity floated by a big corporate could participate in the disinvestment process, a source said
The deadline for submitting expression of interest in response to the preliminary bid document is March 17. Representation pic
New Delhi: Moving forward with Air India stake sale process for the second time in less than two years, the government on Monday issued the preliminary bid document for 100 per cent stake in the debt-laden airline along with fixing the debt amount for prospective bidders and easing the bidding norms.
The deadline for submitting the bids is March 17. As part of the ambitious strategic disinvestment, AI would sell its cent per cent stake in profit-making budget carrier Air India Express as well as 50 per cent shareholding in equal joint venture Air India SATS Airport Services. All three entities would be sold together and management control of the national carrier would be transferred to the new investor.
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In a significant move, the successful bidder would have to take only a debt of Rs23,286.5 crore while the liabilities would be decided depending on current assets at the time of closing of the transaction.
The rest of the amount of the total R60,074 crore debt as on March 31, 2019, would be transferred to Air India Assets Holding Ltd (AIAHL), the special purpose vehicle.
Staff dues of about Rs1,383.70 crore on account of Justice Dharmadhikari Commission's recommendation on past arrears would be paid by the government. The new investor would continue to use the 'Air India' brand.
The government has relaxed the bidding norms wherein net worth for potential bidders fixed at Rs3,500 crore and minimum stake for an individual consortium partner lowered to 10 per cent. The net worth criterion was Rs5,000 crore in the 2018 bid document.
Another key change is that an entity can put in a bid on the "strength of its parent", which means that an entity floated by a big corporate could participate in the disinvestment process, a source said.
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