Air India bids open to all with enough resources: Finance ministry
The government had last month floated a preliminary information memorandum inviting bidders to buy 76 per cent stake in loss-making Air India along with transfer of management control.business Updated: Apr 19, 2018 13:57 IST
Any entity having adequate finances and ability to run Air India can bid for 76 per cent stake in the national carrier, department of investment and public asset management (DIPAM) secretary Neeraj Gupta said on Thursday.
The government had last month floated a preliminary information memorandum inviting bidders to buy 76 per cent stake in loss-making Air India along with transfer of management control.
An official in the finance ministry said there has been good response from entities in the airline industry as well as corporates for buying stake in the debt-ridden national carrier.
“We are not looking for only an airline to take over Air India... Anybody who has (required) net worth and funds can bid for Air India,” Gupta said at an Assocham event in New Delhi.
The DIPAM secretary said the government has kept financial capacity of the bidder as the main criteria for disinvestment of Air India. The bidder should also have the ability to run the national carrier.
As per the bid document, bidders would be required to have a minimum net worth of Rs 5,000 crore and should have posted profit after tax (PAT) in three of the previous five financial years from the Expression of Interest (EoI) deadline. The last date for submission of the bids is May 14.
The entity acquiring the domestic carrier will have to retain the ‘Air India’ brand for AI’s business operations for a minimum specified number of years on terms to be detailed at request for proposal (RFP) stage.
The bids can be put in by a single player or as part of a consortium. The consortium can be along with a bank, venture capitalist, financial institution or fund.