Govt extends deadline to bid for Air India by two months till Aug 31

The govt has once more prolonged the deadline to bid for Air India by two

The govt has once more prolonged the deadline to bid for Air India by two months until August 31 as the coronavirus (Covid-19) fallout has disrupted financial routines globally.

This is the 3rd time the deadline has been prolonged.

The divestment method for the national carrier was initiated on January 27. Issuing a corrigendum to the Expression of Curiosity (EoI) for sale of Air India, the Section of Financial investment and Community Asset Administration (DIPAM) mentioned the deadline has been prolonged in watch of the “request obtained from the IBs (fascinated bidders) in watch of the prevailing situation arising out of Covid-19.” Whilst issuing the EoI in January, the previous day for bids was held at March seventeen, which was later on prolonged until April 30. This was additional prolonged to June 30, and now until August 31.

Also, the day for intimation to Experienced Fascinated Bidders (QIBs) has been prolonged by two months until September 14, the DIPAM mentioned in the corrigendum posted on its web site.

“Even further adjustments with respect to the Significant Dates, if any, will be communicated to the Fascinated Bidders subsequently,” it included. The Covid-19 pandemic and subsequent lockdowns have disrupted financial routines globally.

The aviation sector has been strike tricky by the coronavirus pandemic, with airlines cancelling flights and asserting fork out cuts for personnel. The govt has already prolonged the time given to buyers to bid for its whole 52.ninety eight for every cent stake in Bharat Petroleum Corp Ltd (BPCL) to July 31. The preliminary deadline was Could two, which was prolonged until June thirteen. After its unsuccessful bid to provide Air India in 2018, the govt in January 2020 restarted the divestment method and invited bids for marketing a hundred for every cent fairness in the state-owned airline, together with Air India’s a hundred for every cent shareholding in AI Convey Ltd and 50 for every cent stake in Air India SATS Airport Services Non-public Ltd.

In 2018, the govt had made available to provide 76 for every cent stake in the airline.

Of the airline’s total credit card debt of Rs 60,074 crore as of March 31, 2019, the buyer would be demanded to take in Rs 23,286.5 crore, when the rest would be transferred to Air India Assets Holding Ltd (AIAHL), a special purpose automobile.

For the latest fiscal, the Funds has pegged disinvestment proceeds at Rs two.10 trillion. This consists of Rs one.twenty trillion from CPSE share gross sales and Rs 90,000 crore from share gross sales in general public sector banks and money institutions, together with listing of coverage behemoth LIC.

The govt has already kickstarted the method of variety of transaction advisor for the preliminary general public presenting (IPO) of Lifestyle Insurance plan Corporation.