Air India privatisation: Tatas have shown interest, says Jayant Sinha
The government has given its nod for the disinvestment of Air India, which has a debt of over Rs50,000 crore and is staying afloat on taxpayers’ money
New Delhi: The Tatas had formally shown an interest in Air India’s stake sale, Union minister of state for civil aviation Jayant Sinha said on Thursday.
The government has given its nod for the disinvestment of Air India, which has a debt of over Rs50,000 crore and is staying afloat on taxpayers’ money.
“We have, of course, received from both IndiGo as well as the Tatas indications of interest for the airline (Air India), and then, we have received formal indications of interest for the other aspects of the Air India group. These are the formal indications we have received so far,” Sinha told television channel CNBC TV18.
He said the government was working in a time-bound manner to conclude the bidding process and that the process of receiving the expressions of interest as well as bids should take six to eight months.
Market leader IndiGo had earlier written to the ministry of civil aviation, expressing its interest to buy out Air India’s flight operations, particularly its international services.
Ground services providers such as the Bird Group and Turkish company Celebi have also shown interest in acquiring the ground handling arm of the Air India — the Air India Air Transport Services Limited (AIATSL).
Sinha also said the government had appointed legal, transactional and asset valuer advisors for the purpose.
On 28 June, the Cabinet Committee on Economic Affairs (CCEA) had given its agreement in-principle for the strategic disinvestment of Air India and five of its subsidiaries.
Subsequently, an Air India-specific alternative mechanism was set up to guide the process. The ministerial group is looking into the treatment of Air India’s unsustainable debt, hiving off of certain assets to a shell company, demerger and strategic disinvestment of three profit-making subsidiaries, among other aspects.
- Kotak Mahindra Bank reports 12% rise in profit, but misses estimates
- RBL Bank Q1 net profit rises 35% to Rs 190 crore
- News In Numbers: Google fined $5 billion in Android antitrust case
- We are driven by India opportunity, not South Bombay opportunity: Milind Barve
- PE firms emerge as source of capital for late-stage start-ups
Editor's Picks »
- Market optimism before 2019 general election: History may not repeat itself
- UltraTech Cement: No respite from cost pressures
- Mindtree sees strong revenues but client concentration remains high
- Bandhan Bank’s share defies gravity as growth story is intact
- Fund managers slashing allocations to equities in emerging markets, shows BAML survey