Published 17:41 IST, April 28th 2020
Government extends deadline of bidding submissions for Air India amid COVID-19 outbreak
In view of the Coronavirus pandemic which has gripped the country, the Central Government on Tuesday extended the deadline for submitting bids to buy Air India
- Republic Business
- 2 min read
In view of the Coronavirus pandemic which has gripped the country, the Central Government on Tuesday extended the deadline for submitting bids till June 30 to buy a complete 100 per cent stake in Air India. The deadline was originally set for April 30. The government had restarted the disinvestment process of the state-owned airline in January inviting bids for a 100 per cent equity in Air India, 100 per cent shareholding in AI Express Ltd and 50 per cent in Air India SATS Airport Services Private Ltd.
'Requests received from interested bidders'
While extending the date, the Department of Investment and Public Asset Management (DIPAM) in a notification said, “the changes are in view of the requests received from the IBs (interested bidders) and the prevailing situation arising out of COVID-19."
Interested bidders for Air India are required to have a net worth of Rs 3,500 crore. Amid the Coronavirus crisis, the airline has been instrumental in rescuing stranded Indian citizens abroad and bringing in medical requirements from other countries.
The government had tried to offload the debt on the airlines in 2018 by inviting bids for a 76 per cent stake in the airline. However, it was unsuccessful in inviting bids. Of the total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286.5 crore, while the rest would be transferred to Air India Assets Holding Ltd (AIAHL), the special purpose vehicle.
Updated 17:41 IST, April 28th 2020
