Civil Aviation Ministry heading towards phase-II of Air India disinvestment

New Delhi: Union Civil Ministry is heading towards the second phase of proposed strategic disinvestment of Air India that will begin with the announcement of names of qualified bidders on January 5, 2021.

While addressing a press conference Pradeep Singh Kharola, Secretary of Civil Aviation Minister said that "The strategic disinvestment of Air India is a transparent two-step process. The first process is the submission of 'Expression of Interest', which is bidders showing interest in Air India. It is a confidential process and as of now, multiple 'Expression of Interest' have been received. Their scrutiny process is going on. It will be completed by January 5 and we will have eligible bidders,"

The first process- submission of 'Expression of Interest', was completed on December 1,added Kharola.

According to a report by ANI Union Civil Aviation Minister Hardeep Singh Puri said that the Department of Investment and Public Asset Management, which comes under the Union Finance Ministry "will indicate about the bidders after examining 'Expression of Interest' on January 5,"

"The bidders who will be shortlisted after the due criteria will be given time of 90 days to get full information and we will also check their files," he added.

Earlier, In view of prevailing situation arising out of Covid-19, last date for submission of Expressions of Interest (EOIs) had extended upto December 14, 2020.

According to the process of strategic disinvestment, expressions of interest (EoI) submitted by interested bidders will be shortlisted based on eligibility criteria and other terms mentioned in the Preliminary Information Memorandum (PIM) in the first phase.

In the stage II, shortlisted interested bidders will be provided with a request for proposal (RFP) and thereafter there will be a transparent bidding process, said a presentation by the ministry.

The presentation also noted that in view of the post-Covid situation and severe impact on aviation sector, the government has considered various options related to disinvestment, including bidding parameters in the PIM and meetings of Inter-Ministerial Group and Core Group of Secretaries on Disinvestment have been held regularly to review the disinvestment process.

The interested bidders have been asked to indicate their interest on Enterprise Value of Air India.

The PIM for inviting EoIs issued on January 27, 2020 had offered 100 per cent sale of equity share capital of Air India Ltd (AIL), sale of AIL's 100 per cent shareholding in the Air India Express Ltd (AIXL) and sale of 50 per cent shareholding in Air India Airport Services Private Ltd (AISATS).

This is the central government's second attempt at disinvesting its stake in Air India. In 2018, not a single bid was received for the disinvestment of Air India. This time, the government has proposed strategic disinvestment of 100 per cent of its equity share capital in Air India Limited, which includes Air India's shareholding interest of 100 per cent in Air India Express and 50 per cent in Air India SATS Airport Services.

(with inputs from agencies)