This is the second attempt to sell the debt-ridden airline, which has accumulated over ₹50,000 crore in dues
The government on Monday invited Expression of Interest for 100% stake sale in the national carrier Air India (AI).
Along with AI, it has also invited interest from bidders for its entire 100% stake in low-cost international arm Air India Express and its complete 50% share of ground handling subsidiary AISATS.
The total debt of Air India and Air India Express to be taken on by the new buyer is ₹23,286 crore. The actual debt of the two entities combined was ₹ 60,074 crore. The balance of nearly ₹27,000 crore has been absorbed by the government.
The last date for submitting interest to the transaction adviser is March 17 and the result is expected to be known by March 31. Ernst & Young is the transaction adviser.
The bid document says that the FDI policy for the sale remains unchanged, i.e. foreign carriers will be able to own 49% stake in Air India. The substantial ownership and effective control (SOEC) clause will also be applicable and will have to remain with an Indian.
This is the second attempt launched by the government to sell the debt-ridden airline, which has accumulated over ₹50,000 crore in dues.
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