India's national carrier, Air India is likely to miss its deadline for this financial year for its privatisation as the process is expected to take more than estimated time by the government. Last week, the preliminary bid of the 'Maharajah' witnessed major players including salt-to-software conglomerate Tata Group and US-based fund Interups Inc participating.
By January 6, the Transaction Advisor will notify the eligible bidders who will be given access to Air India's Virtual Data Room (VDR), an official said. The share buying pact would be shared with the bidders, after which the official added, financial offers will be invited. As per a report by news agency PTI, only in the next financial year will the deal is likely to be materialised, as officials expect bidders to have several questions once they have access to VDR and before they position their financial offers.
Air India privatization delayed
The government has the objective of selling its entire 100 percent interest in Air India, which has incurred losses since its merger with Indian Airlines in 2007. Due to the COVID-19 pandemic, the stake selling process has been delayed, and with the government extending the deadline for sending preliminary tenders to the national carrier five times.
The airline, which started as a postal carrier in 1932, has 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots at foreign airports to the effective bidder's control. In addition, 100 percent of the low-cost Air India Express arm and 50 percent of AISATS, which provides cargo and ground handling services at major Indian airports, will also be procured by the bidder.
The government has sweetened the deal this time as previous attempts since 2017 failed to get any substantial interest. As per the previous offer, the bidders were asked to take over the entire Rs 60,074 crore debt, which has been softened now.
