The authorities first had nationwide bids in 2018 then again in January this year promoting its stake in Air India, Air India Express and 50% of floor dealing with the firm, AISATS.
Now the senior authorities have been discussing that there are some bidders, collectively with sanctioning events to bid based chiefly on the enterprise worth, implying thought-about but a big discount in debt was unpropitious.
On these lines, they are also thinking of giving some relaxations, restructuring the transaction as few investors are not looking at a fixed thing at the moment. Perhaps, commence with the EOI and determine before financial bids are sealed, but then post this a decision has to be taken, says government officials.
There has been a reduction in the airline’s debt to Rs 23,286 crore from Rs 62,000 crore to make it more engaging to suitors, and is dubious about scaling back the debt.
With pandemic affecting companies all over the globe with the travel sector suffering the most, the concern in Air India privatisation has not been easy, resulting in the federal government stretching the deadline for submission of bids.
According to ET in August, Tata is contemplating bidding for the provider, and in all odds the one determined bidder. A decision will be taken in a week, or 10 days regarding what is to be done moving forward said, officials.
“Also there is a concern of underselling the asset despite the pandemic because the global situation appears to be improving,” mentioned one other official.
The delay in the privatisation of Air India since 2018 has been a recommendation by the EY consultant for AI divestment to the federal government.
A senior authority also mentioned that this process can’t be delayed any further as the situation is not getting any better. So the decision has to be taken in the current or next fiscal because the government can’t stall this any further.