Air India is not getting buyers, for the fourth time in a row, Bid’s last date has been pushed forward
new Delhi. No one is willing to buy Air India with billions of rupees of debt? Is any private firm not interested in this white elephant of the government? This question is why the government has extended the last date of its Air India Disinvestment bid till October 30. This is the fourth time when the government has to move forward on the Air India Bid Last Date. The government has extended this debt in view of the spread of Covid 19. Let me tell you that earlier its last date was kept 31 August.
The government had issued a notice on January 27 to sell its 100 per cent stake from the loss making Air India, and had called for bids by March 17. Since then, the government has not found any buyer who can handle Air India. The government hopes that Air India will be disinvested in the next two months.
What is the government’s plan
According to the government’s plan, 100% stake of Air India Express will be sold. It also plans to sell 50 per cent stake in Air India and SATS joint venture company AISATS. The management control of Air India will also be with the winning company. For this, some conditions have also been laid by the government. The buyer will have to take responsibility of Air India’s only debt of Rs 23,286.5 crore.
On January 7, the GOM stamped
Let me tell you that at present the total debt on AI is 60,074 crores. The government will bear the burden of debt of about Rs 37,000 crore. Air India had a net loss of Rs 8,556 crore in the financial year 2018-19. On January 7 this year, the Group of Ministers, chaired by Home Minister Amit Shah, approved the proposal related to privatization.