PE funds too can bid for Air India: DIPAM

Untitled-13 — The government would retain 24 per cent stake in the national carrier, and the bidder who buys Air India would have to stay invested in the airline for at least three years.

NEW DELHI: The government is open to selling its stake in Air India to any firm with required net worth and funds and not just airlines, a senior official has said, making a case for big private equity funds to bid for the national carrier.

“Even in Air India, we are not looking for only an airline to take over,” department of investment and public asset management (DIPAM) secretary Neeraj Gupta said on Thursday. “Finance is the main criteria and the capability to take over and run such an asset is the main criteria,” he said at a function organised by industry association Assocham.

Last month, the government had floated a preliminary information memorandum inviting bidders to buy 76% in Air India 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.

Otherwise, anybody who has (required) net worth and funds can bid for Air India,” Gupta said, adding that venture capital funds may tie up with domestic companies to bid for state-run assets.

Separately, a finance ministry official said there has been good response from entities in airline industry as well as corporates for buying stake in the debt-ridden national carrier.