New Delhi: With the curve of new Covid-19 cases flattening across the country, the Central government expects to complete the Air India privatisation by the end of this year. Meanwhile, the prospective bidders have sought clarity from the government on stake sale and they will soon be allowed physical visits to clear their doubts.
According to sources, draft share purchase agreement, government guarantee against aircraft loans and employees liability are some of the issues which have been raised by the shortlisted bidders and their issues will soon be sorted out. Recently, a request for proposal (RFP) prepared by the government shared with potential bidders has recommended that the existing employees of Air India should be retained for one year after privatisation.
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The Tata group and SpiceJet are the final two bidders for Air India. In December last year, both had submitted Expressions of Interest (EoI) to the government and they are expected to submit the financial bids by September. As per the Air India EoI floated by the department of investment and public asset management (DIPAM) that falls under the Finance Ministry, in January 2020, of the airline's total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286.5 crore, while the rest would be transferred to Air India Assets Holding Ltd (AIAHL).
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This is the second attempt of the Indian government to sell the national carrier as it did not find any takers in the first round when it offered to sell a 76 per cent stake in Air India in 2018.
Read:| Tata Group, SpiceJet shortlisted for Air India bidding
