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Last Updated : Sep 15, 2020 01:23 PM IST | Source: Moneycontrol.com

Air India sale | Centre may drop debt condition to sweeten the deal: Report

This is the government's second attempt to privatise Air India, after the first failed attempt in 2018.

The Centre may drop a condition of asking Air India's new owner to take on $3.3 billion of aircraft debt as the government has been struggling to find suitors for the loss-making national carrier.

The Centre has been advised to scrap the condition since it discourage potential buyers of Air India, Bloomberg said.

According to the new proposal, potential buyers will be permitted to bid on the enterprise value and not on the entity value, the report said.

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Moneycontrol could not independently verify the story.

A spokesman for the aviation ministry referred queries sent by Bloomberg to the Department of Investment and Public Asset Management (DIPAM). A finance ministry spokesman wasn’t immediately available for comment.

This is the government's second attempt to privatise Air India, after the first failed attempt in 2018. The Centre has placed its entire 100 percent stake in the airline up for sale, as against 76 percent in the previous attempt.

The government recently extended the deadline for bids for the fourth time in 2020 due to the COVID-19 pandemic. Potential bidders now have time till October 30 to make formal offers.

Selling the Centre's stake in major state-run companies such as Air India and Bharat Petroleum Corporation (BPCL) is expected to help the government meet is FY21 divestment target of Rs 2.1 lakh crore.
First Published on Sep 15, 2020 08:47 am
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