On Monday, the government issued the preliminary information memorandum for 100 percent stake sale in Air India. According to the bid document, the national carrier would also be selling 100 percent stake in Air India Express and 50 percent shareholding in the joint venture AISATS (Air India Sats Airport Services) as per its strategic disinvestment.
The government has set 17 March as the deadline to submit Expression of Interest (EoI) as per a bid document issued by the Department of Investment and Public Asset Management.
Qualified bidders will be notified on 31 March and management control of the airline will be transferred to the successful bidder.
EY will be transaction adviser to Air India's disinvestment process.
"The Government of India (GOI) has given 'in-principle' approval for the strategic disinvestment of AI (Air India) by way of the transfer of management control and sale of 100% equity share capital of AI held by GOI which will include AI's shareholding interest of 100% in AIXL (Air India Express Limited) and 50% in AISATS (Air India SATS Airport Services Private Limited)," the bid document said.
While the government owns 100 percent stake in Air India and its subsidiary Air India Express, AISATS is a joint venture between Air India and Singapore Airport Terminal Services (SATS) Limited. AISATS provides ground and cargo handling services to airlines.
This is the government's second attempt to sell its stake in the debt-ridden airline.
For the financial year 2019-20, the government's disinvestment target is set at Rs 1,05,000 crore.