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    Govt extends deadline for Air India bid for fourth time, gives bidders two more months

    Synopsis

    Issuing a corrigendum to the Expression of Interest (EoI) for sale of Air India, the Department of Investment and Public Asset Management said the deadline has been extended in view of the "request received from the IBs (interested bidders) in view of the prevailing situation arising out of COVID-19".

    Agencies
    The government has extended the deadline for submitting expressions of interest in stake sale of Air India by two months to October 30, while intimation to qualified bidders will be done by November 20.

    The fourth extension for interested bidders has been given, “as per the requests received from the interested bidders in view of the prevailing situation arising out of COVID-19,” the department of investment and public asset management (DIPAM) said in a statement on Tuesday.

    Tata Group has said officially that it has begun due diligence on the airline and may make a formal bid.

    The national carrier was put on the block by the government on January 27 while a deadline of March 31 was set. This was extended to June 30 and then to August 31.

    The government wants to sell its 100% stake in the national carrier through the divestment process, sweetening the deal from earlier share of 76% as it did not find suitors. It has also reduced the debt of the loss-making airline to Rs 23,286 crore – which the buyers will have to take on – transferring the rest to Air India Assets Holding Ltd.

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    11 Comments on this Story

    Vivek Gupta56 days ago
    Government should think of some leasing model, where the full management and control is given to a private company, where all the assets and liabilities are freezed as it is and any future loss (on account of management co.) and profit is shared.
    Jagdip Vaishnav56 days ago
    Govt should declare that there shall be no time limit at all for Air India bid
    Sandeep Mohindra56 days ago
    Even if given for free, it will start adding losses from yhe very next day as rent for stranded planes will get added.
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