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The government proposes to sell up to 76% stake in Air India and transfer the management control to private parties
The government would retain 24% stake in Air India and the winning bidder will require to stay invested in Air India for at least 3 years. The government has asked for Expression of Interest (EoI), from various entities including foreign airlines.The last date for submission of EoI is May 14 and intimation to the qualified interest bidders would be made on May 28.
The bidder should have a minimum net worth of Rs.5,000 crore and the requirement is subject to certain conditions depending on the class of entities. Bidding can be done as a single player or as part of a consortium. Among others, the ministry has said that each consortium member should have positive profit after tax in at least three of the immediately preceding five financial years from the EoI deadline.
Further, if the member of the consortium is a scheduled airline operator in India, the condition to meet positive profit after tax shall not apply to such member provided shareholding of such member is restricted to maximum of 51 percent of paid up equity share capital of the consortium (special purpose vehicle). In case of a foreign airline (ie airline which is not a scheduled airline operator in India), the requirement to meet positive profit after tax requirement shall remain applicable,
