New Delhi, Mar 28: The Government of India on Wednesday invited Expression of Interests to sell 76 per cent stake in state-carrier Air India. The last date for bidders is May 14. Following an evaluation, the shortlisted bidders will be notified by May 28.
As per the advertisement issued by the Government, the companies or consortium will be eligible to bid only if their net worth crosses Rs 5,000 crore.
At present, the Indian private carrier which comes close to the mark is IndiGo, with a net worth of Rs 3,800 crore. Other carriers which are reportedly inclined towards acquiring Air India include Jet Airways, SpiceJet and Tata group-promoted Vistara. The trio, however, recorded negative growth in the last fiscal.
However, companies with net zero or negative worth could also participate, provided they form a consortium whose collective worth is Rs 5,000 crore.
According to reports, the Indian private carriers could join hands with foreign counterparts to bid for the debt-ridden Air India. Jet Airways partnering with Air France-KLM and Vistara teaming up with Singapore Airlines could emerge as the likely combinations.
The non-core assets of Air India, including its iconic building in Mumbai, would not be up for sale. Instead, it would be part of the special purpose vehicle or SPV, which would also include the working capital debt -- amounting upto Rs 52,000 crore.
The magnitude of the debt was one of the prime reasons behind the Government disinvesting Air India, once known as the 'Maharajah' due to the monopoly it enjoyed.
West Bengal Chief Minister Mamata Banerjee condemned Centre's decision to privatise AI upto 76 per cent. "I am sorry to read in the media about the Govt inviting expression of interest for selling Air India, the jewel of our nation. We strongly oppose this and want this order to be withdrawn immediately. This Govt must not be allowed to sell our country (sic)," she said on Twitter.
(The above story first appeared on LatestLY on Mar 28, 2018 06:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).