Civil Aviation Minister Hardeep Puri said on Saturday that the debt-ridden national carrier, Air India will be 100% disinvested. He informed that prospective buyers have 64 days to come with their bids as the national carrier must find a new home.
"We've decided that Air India will be 100% disinvested. The choice isn't between disinvestment and non-disinvestment. It's between disinvestment and closing down. Air India is a first-rate asset but has an accumulated debt of Rs 60,000 crores. We need to draw the slate clean," Puri told news agency ANI. "It must find a new home," he also added.
The union minister on Friday said that the government is looking at a new timeline for Air India disinvestment and financial bids will be invited in the coming days. Multiple entities had last month expressed interest in bidding for the government's stake in the airline.
Shortlisted bidders for national carrier Air India Limited will have to submit their offer in the next two months as the government hopes to conclude 100% divestment in the airline.
"In the last meeting, on Monday, it was decided that the shortlisted bidders (for Air India disinvestment) be informed that the bids have to come in within 64 days. This time the government is determined and there is no hesitation," the Union Minister said.
So far, Tata Group and SpiceJet's chairman and managing director Ajay Singh along with his consortium of Ras Al Khaimah Investment Authority and Bird Group's Ankur Bhatia have been shortlisted to bid for the carrier, according to media reports.
It must, however, be noted that the government has in its previous attempt failed to sell the cash-strapped airline. The government aims to complete the privatization of the national carrier in FY2022.