The government on Tuesday proposed selling 76% stakes in Air India to private parties, with the condition that the brand ‘Air India’ will be retained and the control of the national-carrier will stay with Indian nationals, according to the official document. Last year the Narendra Modi gave in-principle approval for strategic disinvestment of the debt-laden national carrier to private players. The government has also issued preliminary information memorandum on eligibility criteria for bidders.
The government has taken a step forward in Air India disinvestment and has proposed the following:
- The brand ‘Air India’ to be retained for a few years
- New bidders need to ensure that only Indian nationals will have the control of Air India
- Only companies with the minimum net worth of Rs 5,000 crore can bid for Air India
- The lead member shall hold at least 51% of paid-up capital
- Management or employees can participate directly in the bidding process or by way of forming a consortium, as per the memorandum
- The Air India disinvestment transaction will involve Air India, its low-cost arm Air India Express and Air India SATS Airport Services Pvt Ltd. The latter is an equal joint venture between the national carrier and Singapore-based SATS Ltd