Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  Entities with sufficient funds, ability to run Air India can bid, says finance ministry official
BackBack

Entities with sufficient funds, ability to run Air India can bid, says finance ministry official

The govt had last month floated a preliminary information memorandum inviting bidders to buy 76% stake in loss-making Air India along with transfer of management control

The government would retain 24% stake in Air India, and the bidder who buys the national carrier would have to stay invested in the airline for at least three years. Photo: Abhijit Bhatlekar/MintPremium
The government would retain 24% stake in Air India, and the bidder who buys the national carrier would have to stay invested in the airline for at least three years. Photo: Abhijit Bhatlekar/Mint

New Delhi: Any entity having adequate finances and ability to run Air India can bid for 76% stake in the national carrier, Department of Investment and Public Asset Management (DIPAM) secretary Neeraj Gupta said on Thursday. The government had last month floated a preliminary information memorandum inviting bidders to buy 76% stake in loss-making Air India along with transfer of management control.

An official in the finance ministry said there has been good response from entities in airline industry as well as corporates for buying stake in the debt-ridden national carrier.

“We are not looking for only an airline to take over Air India... Anybody who has (required) net worth and funds can bid for Air India," Gupta said at an Assocham event.

The secretary in the DIPAM said the government has kept financial capacity of the bidder as the main criteria for disinvestment of Air India. The bidder should also have the ability to run the national carrier.

As per the bid document, bidders would be required to have a minimum net worth of 5,000 crore and should have posted profit after tax (PAT) in three of the previous five financial years from the Expression of Interest (EoI) deadline.

The last date for submission of the bids is 14 May. The entity acquiring the domestic carrier will have to retain the ‘Air India’ brand for AI’s business operations for a minimum specified number of years on terms to be detailed at request for proposal (RFP) stage.

The bids can be put in by a single player or as part of a consortium. The consortium can be along with a bank, venture capitalist, financial institution or fund.

The official said the government will come out with responses based on the queries received from interested bidders. He said there should be no concerns about retrenchment as the government will follow best industry practices.

The government would retain 24% stake in the national carrier, and the bidder who buys Air India would have to stay invested in the airline for at least three years.

As per the bid document, the transaction would involve Air India, its low cost arm Air India Express and Air India SATS Airport Services Pvt. Ltd, which is a joint venture between the national carrier and Singapore-based SATS.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 19 Apr 2018, 01:03 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App