GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Govt Extends May 14 Deadline to Receive Initial Bids for Air India

According to the notification issued on Tuesday, the government will announce the qualified bidders for the beleaguered airline on June 15.

PTI

Updated:May 1, 2018, 3:19 PM IST
facebookTwittergoogleskypewhatsapp
Govt Extends May 14 Deadline to Receive Initial Bids for Air India
Representative image (Reuters)
New Delhi: The government on Tuesday came out with a set of clarifications on the proposed strategic disinvestment in Air India and said individuals other than the airline's employees would not be allowed to bid.

It had issued preliminary information memorandum on March 28 for the proposed sale of up to 76 per cent stake in Air India along with management control to private entities.

The disinvestment would include profit-making Air India Express and joint venture AISATS, an equal joint venture between the national carrier and Singapore-based SATS Ltd.

The government has put out clarifications for 160 questions from interested bidders on the disinvestment of Air India and its two subsidiaries — Air India Express and AISATS.

According to the 19-page document released today, the government has clarified that "individuals (other than employees) are not allowed to bid".

Clarifications have been provided on various other aspects, including those related to slots, bilateral rights and employee rights.

"Details of existing slots and code share agreements will be provided at RFP (Request for Proposal) stage. It is expected that there will not be any impact of disinvestment on existing slots and bilateral rights.

"Bidders are advised to undertake their own assessment for the impact of disinvestment process on the existing code share agreement," the government said.

This was in response to queries on whether privatisation would impact renewal of existing slots and bilateral flying rights.

For more than 50 queries, the government has said details would be provided at the time of RFP stage.

To a query related to staff, the government said, "employee concerns are being suitably addressed".

"Grounded aircraft are assets of Air India. Successful bidder/ Air India post strategic disinvestment can deal with them/ dispose as deemed fit subject to the terms and conditions of the Shareholders' Agreement," it said.

As per the information memorandum, issued in March, the government would retain 24 per cent stake in the national carrier, the winning bidder would be required to stay invested in the airline for at least three years.

In the set of clarifications, it has been emphasised that "it is a considered decision by Government of India to retain 24 per cent stake".

Also Watch

| Edited by: Nitya Thirumalai
Read full article
Most Active
Company Price Change %Gain
Reliance 920.80 +4.95 +0.54
Vedanta 251.80 +1.20 +0.48
TCS 3,585.80 -17.90 -0.50
United Spirits 3,250.30 +131.15 +4.20
SBI 266.95 -1.55 -0.58
Company Price Change %Gain
HDFC 1,820.00 +13.95 +0.77
Just Dial 507.40 +42.55 +9.15
Avenue Supermar 1,497.45 +93.25 +6.64
PC Jeweller 192.45 +4.40 +2.34
United Spirits 3,251.00 +128.95 +4.13
Top Gainers
Company Price Change %Gain
Indiabulls Hsg 1,172.10 +60.30 +5.42
Hindalco 245.50 +11.40 +4.87
IOC 163.45 +7.55 +4.84
ONGC 175.45 +7.75 +4.62
HPCL 295.20 +11.95 +4.22
Company Price Change %Gain
ONGC 175.35 +7.70 +4.59
Tata Steel 567.20 +18.80 +3.43
Yes Bank 339.45 +8.95 +2.71
Adani Ports 379.90 +8.70 +2.34
IndusInd Bank 1,914.75 +43.55 +2.33
Top Losers
Company Price Change %Gain
Coal India 275.60 -4.50 -1.61
Tech Mahindra 702.75 -8.60 -1.21
Bharti Infratel 314.85 -3.50 -1.10
ITC 272.30 -2.55 -0.93
ICICI Bank 295.65 -2.05 -0.69
Company Price Change %Gain
Coal India 276.05 -3.80 -1.36
ITC 271.95 -2.85 -1.04
SBI 267.00 -1.50 -0.56
TCS 3,589.45 -15.35 -0.43
ICICI Bank 296.50 -0.75 -0.25