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Govt says, preparing bid doc for disinvestment of Air India

The Ministry of Civil Aviation has informed the Lok Sabha recently that it is preparing a bid document for Air India disinvestment
New Delhi: The Ministry of Civil Aviation has informed the Lok Sabha recently that it is preparing a bid document for Air India disinvestment. The information was shared by Union Minister Hardeep Singh Puri in response to a question asked in the Lower House of the Parliament. Puri said, “After the formation of the new government, Air India Specific Alternative Mechanism (AISAM) has been reconstituted and has approved the re-initiation of the strategic disinvestment of Air India and its subsidiaries. The preparation of Preliminary Information Memorandum (PIM) for inviting Expression of Interest (EoI) for the strategic disinvestment of Air India is in process.”

Bid doc will include details on Air India employees

The minister also said, “The bid document for strategic disinvestment would also include the matters related to employees of Air India, the contours of which will be decided by AISAM.” The PIM would also include matters related to disposal of the national carrier’s assets among other parameters, the Lok Sabha was told.

The backdrop

The total debt on the airline, as on March 31, stands at Rs 58,282.02 crores. The government has hived off debt amounting to Rs 29,464 crores via a special purpose vehicle (SPV). The government is likely to review the debt allocation between Air India and SPV closer to disinvestment. Earlier this month, PSU Watch reported that the government is expected to finalise the offer document for disinvestment by end of November. The initial deadline to release the offer document was October-end, however, it got postponed, a source had said. Air India began the process for the strategic sale of its three businesses — Air India Ltd, Air India Express Ltd, and Air India SATS Airport Services Ltd (AISATS) earlier this month with a tender to engage a law firm.