‘Entities with ability, funds can bid for AI’

Entities having sufficient networth and the ability to run Air India (AI) can bid for 76% stake in the national carrier, DIPAM Secretary Neeraj Gupta said on Thursday.

 Prodding venture capital funds to participate in the PSU disinvestment programme, Gupta said such funds may tie up with domestic companies to bid for State-run assets.

Finance, ability to run it matter

“Even in Air India, we are not looking for only an airline to take over. Finance is the main criteria and the capability to take over and run such an asset is the main criteria,” said the secretary in the Department of Investment and Public Asset Management (DIPAM).

The government had last month floated a preliminary information memorandum inviting bidders to buy 76% stake in AI along with transfer of management control.

“We had given a small carve-out for airline, how the domestic airline can be fitted in terms of eligibility of consortium but otherwise anybody who has (required) networth and funds can bid for Air India,” Gupta said. The proposed disinvestment would also include profit-making Air India Express and JV AISATS.