Air India sale: Amit Shah-led GoM approves draft for inviting bids
BusinessToday.In January 7, 2020
The central government's Group of Ministers (GoM) led by Union Home Minister Amit Shah has approved the draft inviting bids for the sale of India's state-owned carrier.
Apart from giving nod to receiving the Expressions of Interest (EOI) for the sale of Air India, the GoM also approved the share purchase agreement, under which the airline's total debt of around Rs 60,000 crore would be transferred to a special purpose vehicle (SPV).
Of the total amount, around Rs 29,400 crore has already been transferred to the SPV.
The national carrier has been making losses for long and as part of revival efforts, the government has decided on its disinvestment. "The Expression of Interest as well as share purchase agreement for Air India's sale would be issued this month," an official told PTI.
Apart from Shah, the meeting was attended by Union Finance Minister Nirmala Sitharaman, Union Commerce Minister Piyush Goyal, Union Aviation Minister Hardeep Singh Puri and Aviation Secretary Pradeep Singh Kharola.
The announcement on receiving bids comes in wake of Puri's statement last month, wherein he said the government was interested in selling the entire 100 per cent stake in Air India.
"AISAM (Air India Specific Alternative Mechanism) has approved the 100 per cent sale of Government of India stake in Air India for the re-initiated strategic disinvestment of Air India," he said in the Lok Sabha.
Air India's net loss in 2018-19 is provisionally estimated to be Rs 8,556.35 crore.