Govt To Sell 100% Stake In Air India To Private Player By May-June: Union Min Hardeep Puri

the Union Civil Aviation Minister Hardeep Singh Puri noted that the airline still is in debt of Rs. 60,000 crores and it is liable to be sold.

Air India

Amid the process to sell its entire 100 per cent stake in Air India, the centre said that the choice isn't between disinvestment and non-disinvestment, but between disinvestment and closing down. 

News agency ANI quoted the Union Civil Aviation Minister Hardeep Singh Puri saying that the privatisation of Air India is likely to be completed by the end of May-June. The government has shortlisted some bidders and will close the financial bid within 64 days. 

The minister noted that the airline still is in debt of Rs. 60,000 crores and it is liable to be sold. He added that the second wave of COVID-19 has delayed airlines being allowed to operate 100 per cent that was planned to happen from the start of the summer schedule this month-end, but for now, there are no questions to curtail the domestic operations. 

According to the eligibility criteria set by the transaction advisor EY, which is currently assessing potential parties' EoIs, the bidder should have a Rs 3,500 crore net value. Tata Group is said to be the front runner for Air India with strong financials and aviation experience. 

Besides Tata Group, the US-based Interups Inc. has also submitted an Expression of Interest (EOI) in picking up stakes in Air India after over 200 employees of the airline have formed a consortium with the US-based company to bid for the airline.

Last month, it was reported that the national carrier  received an expression of interest (EOI) from Kolkata-based industrialist Pawan Ruia to buy a 100% stake in the ailing airline that has been in losses since it merged with Indian Airlines in 2007.