Government proposes to sell 76 per cent stake in Air India
In a move that could increase buyers interest in AI, the government said only a part of the airline's debt would be passed on to the buyer.
New Delhi: The Central government on Wednesday revealed that it would be selling 76 per cent stake in debt-ridden national carrier Air India through an auction process.
In an official document that accompanies invitation for the Expressions of Interest (EoI) by interested bidders to purchase Air India, the government said the disinvestment would cover Air India, its low-cost arm Air India Express and ground-handling firm Air India SATS Airport Services.
In a move that could increase buyers interest in Air India, the government said only a part of the airline’s debt would be passed on to the buyer.
According to sources, Rs 33,390 crore of the carrier’s total debt of Rs 48,700 crore debt will remain with Air India and will have to be absorbed by the potential buyer. The rest will be allocated to a government holding company. The last date for submission of EoIs is May 14.