scorecardresearch
Govt targets Air India handover by Dec 

Govt targets Air India handover by Dec 

DIPAM also clarified that Cairn moving court in the south district of New York against Air India to enforce a tax arbitral award will not dampen the investor sentiment for strategic sale

Financial bids for Air India to come by Sept Financial bids for Air India to come by Sept

The Department of Investment and Public Asset Management (DIPAM) has expressed a strong hope that the process of financial bidding for the strategic disinvestment of Air India will be held next month, while also maintaining that the government plans to hand over the airline by December this year. 

A source in the department also indicated that the Bharat Petroleum Corporation (BPCL) transaction will be completed only by the end of the current financial year and the financial bidding for the same is likely to be completed by December. 

The DIPAM source told BusinessToday.In, “We are ensuring that the financial bids for Air India come in by September. Our target is to hand over Air India by December this year.”

DIPAM also clarified that Cairn moving court in the south district of New York against Air India to enforce a tax arbitral award will not dampen the investor sentiment for strategic sale and in case of need, the government will give a guarantee to the prospective bidders against the same. 

“This is not a major issue. The Cairn issue is now over. That said, any judgment of a US court is not enforceable in Indian territory. In case there is a judgment, they can attach an aircraft in the US and not in India. If that, at all, is a concern, the government will provide a warranty to the prospective bidders,” the source added. 

The source pointed out that BPCL's strategic sale has been impacted by the second wave of the COVID-19 pandemic and will see the light of the day by the end of the current financial year. Meanwhile, the process of due diligence is currently going on in the case of the Shipping Corporation of India.  

The strategic sale of Air India was approved by the Cabinet committee on Economic Affairs in February 2019, while that of BPCL, SCI and Container Corporation of India were approved in November, 2019. The government plans to raise Rs 1.75 lakh crore in the current financial year through disinvestment and strategic sale.

Also read: Cairn, Devas lawsuits to not impact Air India disinvestment: Govt
Also read: '40 mins extra, expensive tickets': Afghan crisis impacts Indian airlines' international flights