Government has extended time to submit bids of Air India until June 30 due to lock-down
Government on Tuesday extended the deadline to submit bid documents for Air India by two months to 30 June, given the ongoing nationwide lock-down.
This is the second time the govt extended the deadline to submit bids for Air India because it had earlier extended the deadline to 30 April from 17 March.
Though both aviation and oil sectors have been badly hit by the covid-19 pandemic, the finance ministry is confident it will complete the privatization of Air India and Bharat Petroleum Corporation Limited (BPCL) as it has the full financial year ahead or at least this is what we have heard. That is why government is playing safely rather than fast.
Speaking on the issuing of the extended deadline of Air India, the Department of Investment and Public Asset Management (DIPAM) on Tuesday said, the deadline has been extended in view of the “request received from the IBs (interested bidders) in sight of the prevailing situation arising out of Covid-19”. According to this information extending would be easier on the part of government amid the crisis.
The government, which aims to sell its entire stake in Air India, had in January began the stake sale process by inviting offers from potential investors after a costly turnaround plan and an earlier effort to sell a controlling stake in the past.
In 2018, the govt had offered to sell its 76 per cent stake within the airline. Of the airline’s total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286.5 crore, while the rest would be transferred to Air India Assets Holding, a special purpose vehicle.
The date for intimation to qualified interested bidders (QIB) has also been extended by two months till July 14.”Further changes with respect to the Important Dates, if any, will be communicated to the Interested Bidders subsequently,” the department said within the notice dated April 28.
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