New Delhi: The government has decided to extend the bid submission deadline for the sale of Air India by two months in the wake of requests received from interested bidders in the backdrop of the COVID-19 pandemic. In an official notification released online, the Department of Investment and Public Asset Management (DIPAM) said, "The above changes are as per the requests received from the IBs in view of the prevailing situation arising out of COVID-19." This is the fourth time that the deadline has been extended for the privatisation of the national carrier.
PSU Watch had earlier reported on May 27 that sources have said that more deadline extensions are on the way and that the government is resorting to wait and watch approach for its disinvestment plans for the current fiscal.
According to the notification, the last date for the submission of bids has for sale of Air India has been extended to October 30. The previous deadline for submission of EoI for Air India was set to expire on August 31. The department also said that the last date for intimation to the qualified interested bidders (QIB) has been extended to November 20. "Further changes with respect to the Important Dates, if any, will be communicated to the Interested Bidders subsequently," the notification added.
The COVID-19 pandemic and the subsequent lockdowns have disrupted economic activities across the world. The aviation sector has taken a major hit and has announced layoffs and pay cuts for staff. In this scenario, it is likely that the situation may continue and more deadline extensions could be in the offing. Apart from Air India, the other big privatisation exercise undertaken by the government is that of oil marketing company BPCL. The EoI submission deadline for BPCL has also been extended from July 31 to September 30. However, the government has reiterated its intention of going ahead with the privatisation plan and putting the two companies up for sale to private players.
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