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Corona influence: Air India divestment deadline prolonged for fourth time

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NEW DELHI: The pandemic has led to the fourth extension for divesting Air India. Now, bidders can place their bids until October 30 as an alternative of the month-end. And, certified bidders (IB) might be intimated by November 20, as an alternative of September 14 as per the third prolonged deadline.
“The modifications as as per request acquired from the IBs in view of the prevailing state of affairs arising out of Covid-19,” Division of Funding and Public Asset Administration (DIPAM) mentioned in a corrigendum issued Tuesday to the expression of curiosity (EoI) on the market of Air India. The second stake sale course of was initiated on January 27, 2020, after a failed bid over two years again.
The federal government has left nothing to likelihood in its second try and unload debt-ridden AI. It had allowed NRIs, who’re Indian nationals, to come clean with 100% stake within the airline with out violating the substantial possession and efficient management norms.
AI’s debt-cum-liabilities mixed burden is nearly Rs 90,000 crore. The federal government has this time considerably sweetened the sale phrases. It has provided on the market its 100% stake in AI and AI Categorical — as an alternative of 76% within the first try — and all the 50% it owns in floor dealing with three way partnership AI-SATS. Eligibility phrases have been relaxed for bidders and they are going to be anticipated to tackle Rs 32,447 crore of debt-cum-liabilities — primarily present worth of 146 plane they are going to be getting — of the full quantity of Rs 88,781 crore with the federal government retaining with it Rs 56,334 crore.

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