The disinvestment of Air India is crucial for the government to achieve the Rs 1.05 lakh crore disinvestment target.
After a failed attempt last year, the government is reviving the plan for disinvestment of public airline Air India and is planning to fast track the process, sources said on Wednesday.
Last year, the Centre had invited Expression of Interest (EoI) for strategic disinvestment of Air India, including its shareholding in Air India Express and Air India Air Transport Services Limited. However, it did not receive any bid till the last date on May 31, 2018.
The disinvestment of Air India is crucial for the Prime Minister Narendra Modi's government to achieve the Rs 1.05 lakh crore disinvestment target for the current fiscal year. The government is likely to invite EoI from willing buyers in October this year.
Before starting the process, the government has closed Air India's financial books after July 15. The government will invite EoI based on the financial books of up to July 15.
Sources in the know of the process told Zee Media that from now on all expenses and income will be under the government's watch. The government plans to invite EoIs in October and aims to complete the disinvestment process within three months from that.
Before inviting the EoIs, the Ministry of Civil Aviation will hold meetings with potential buyers and investors, sources said.
The government is likely to sell its entire stake in the public carrier and will keep only nominal stake with it. Sources said that the government wants to present a clear picture of Air India disinvestment plan in the upcoming Union Budget in February next year.
This complete disinvestment plan is in contrast with the last year's proposal when the government had proposed to offload 76% equity share capital of the national carrier as well as transfer the management control to private players, as per the preliminary information memorandum.
Modi government had promised to review its divestment plan after it turned out to be a flop show with zero bidders. By May 31 last year, the deadline for submission of EoI, there was no response from potential bidders.
Finance Minister Nirmala Sitharaman, in her maiden budget presented on July 5, increased the divestment target from Rs 90,000 crore to Rs 1.05 lakh crore for the current fiscal year. The disinvestment of debt-riddedn public carrier forms the major chunk of the government's target. The national carrier has a total debt of Rs 58,351 crore as on March 31 this year, Civil Aviation Minister Hardeep Singh Puri told the Rajya Sabha last month.
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