Government to 100% disinvest in Air India. The process to kickstart after 7th July.
“Besides offering 100 per cent stake to private investors, more loans of the Air India would be transferred to the special purpose vehicle (SPV) in order to further sweeten the deal”
This means any potential investor in the airline will only have to pick up aircraft related and other sundry debt.
- Government in process to sale 100% equity of Air India.
- The two-step process expected to start by 7th July, and complete within 3 to 12 months.
- PMO putting lots of efforts to attract bidders, including transferring loans to the SPV and increase the transferable debt amount.
What has changed this time?
After an unsuccessful attempt last year, the government is all set to sell their 100% shares in Air India. The biggest deal breaker last year was the 26% shares, which the government kept off the deal. With the Jet Airways grounded, Air India is now open for 5-million-per-year passenger market in Europe. Government is also planning to increase the transferrable debt and transfer more debt to MSV category. With these offers on the table, the officials are confident to raise Rs. 10000 crore from this deal.