As the government prepares to peg a price tag to Air India for its stake sale, it has invited applications for an asset valuer for the national carrier as well as its subsidiaries and overseas offices. The Union Cabinet has given its in-principal approval for disinvestment of the debt-laden Air India and has constituted a group of ministers to chart out the future course of action.
According to the tender document floated by civil aviation ministry, the asset valuer will have to carry out the valuation of land, buildings, aircraft, engines, stock inventory of spares, maintenance facilities, furniture, office appliances and computer systems, among others. This exercise will have to be conducted for the airline, its subsidiaries, joint ventures as well as its offices across the world.
The applicant will have to be a valuer registered with the either of the following institutions — Income Tax Department, Reserve Bank of India, Central Public Works Department, Public Sector Banks or Institution of Valuers.
However, bids by a consortium or a group of bidders will not be allowed. Proposals have to be submitted by October 16.
“The bidder is required to complete the aforesaid services/ work including submission of final valuation report within a period of 120 days from the date of issue of letter of award,” the tender document states.
The government had earlier called for applications for a legal advisor and up to two transactional advisors.
Air India has five subsidiaries –Air India Express Limited (AIEL), Air India Air Transport Service Limited (AIATSL), Air India Engineering Services Limited (AIESL), Airline Allied Service Ltd (AASL) and Hotel Corporation of India (HCI). It also has a joint-venture with Singapore Air Transport Services (SATS) called AISATS.
AI group serves 42 international destinations and over 70 domestic stations. It has an operating fleet of 142 aircraft comprising 65 A320 aircraft, 15 B777 aircraft, 24 B787 aircraft, 23 B737-800, 4 B747 aircraft and 11 ATRs.
Air India has a debt burden of more than Rs 50,000 crore and has is also planning to take short term loans worth up to Rs 3,250 crore to meet working capital requirements.