On Thursday Union civil aviation minister Hardeep Puri announced that the Union government has rectified the bidding parameters for Air India’s divestment and has decided to ask for bids at enterprise value. The bids will be available for the enterprise value where bids will be invited for equity and debt both.
Further Hardeep puri added that on Wednesday, The judgement was taken under the Air India Specific Alternative Mechanism (AISAM) during a meeting along with the home ministry.
Hardeep also said that talking about impact and importance of operating environment for Air India various options were considered for the disinvestment. AISAM has decided to revised the biding rules and ask for bids at Enterprise Value. The bids will be allow on Equity and Debt. In current PIM the Debt left in the Company would be Rs 23,286 crores.
With the change in bidding parameters union ministry has also extended the deadline for inviting bids till December 14.
After the process began in January, Centre extended the deadline to June, Centre further extended the deadline to raise bids for the divestment for the third time on August 31.
In August, Centre had come out with a declaration to expand the deadline for raising the expression of interest for the 100 per cent stake sale of national carrier Air India by two months to October 30.
The extension was involved following requests from interested bidders due to the existing situation of Covid-19 pandemic, according to the notification issued by the department of investment and public asset management (DIPAM).
Due National lockdown all the national transport was on the block by the government from January 27 to March 31. Later lockdown was extended to June 30 and then to August 31 earlier.
The central government was planing to sell its Air India Ltd entire stake in amid increasing debt and setting-up losses.
