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SpiceJet can be exempted from an open offer, says MoS Mahesh Sharma

Jan 17, 2015 10:56 AM IST Business Business

Mumbai: Cash-strapped airline SpiceJet is likely to get some respite as Minister of State for Civil Aviation Mahesh Sharma said the airline could be exempted from an open offer. According to sources, the Aviation Ministry is likely to approve the revival plan for the cash-strapped carrier as early as next week.

Speaking to CNBC TV18, Sharma said, "If there is a positive proposal that comes from the airline, we are willing to extend help to the best of our abilities and possibilities within the federal structure of our government."

Here is the excerpt of the interview:

CNBC TV18: Would an infusion of Rs 1,500 crore to address the concerns because Marans have also showed interest in taking over the tax liabilities which remain pending?

Mahesh Sharma: If you are telling me this figure, I think it's sufficient to clear our dues. What are their internal dues, that is not known to us. But the proposal which comes to us definitely we will screen this proposal to the Marans and we will try to settle down the issue.

CNBC TV18: An open offer that these companies will have to make but there is also a provision to provide an exemption from a competent authority and in this case its happen to be Civil Aviation Ministry. Is there a proposal that the government will be considering to wave this requirement of making this open offer?

Mahesh Sharma: See the change is two. One part is clearing of our dues, the passengers services whatever they are, clearing their liabilities and the other part is taxation liabilities, government liabilities and a change of head at our level. So that will consider on the merit. It's a routine process which is no favour to anybody. Many organizations are changing heads and stakeholders and shareholders are changing.