Aviation Minister Jyotiraditya Scindia had made it clear that September 15 will be the last day for the airline’s tender.
Ajay Singh, the cash-strapped founder of SpiceJet, among the other qualified bidders, has also submitted bids in his personal capacity.
Comments have been requested from Ajay Singh’s team and are expected.
The Tatas, who founded Air India in 1932, are considered the pioneers in bringing the airline back.
Air India was nationalized in 1953. Then-Tata Grpup Chairman JRD Tata described the nationalization movement as “the government takes it through the back door.”
In a note to then-Prime Minister Jawaharlal Nehru, he had said: “I can only regret that such a vital step was taken without giving us a proper audience.”
JRD Tata remained at the helm of Air India for many years and took the airline to new heights under his command.
Considered among the best in the world at the time, many airlines sought out Air India’s expertise during their take-off phase, many of them are now global giants.
In 1977, the then Janata Party government removed him from the airline. Air India’s gradual decline began a few decades later and accelerated after 2007, when the airline merged with Indian Airlines, sending its finances plummeting.
The government has made it clear that if Air India, which has a combined debt, accumulated losses of almost Rs 1 lakh crore, is not sold, it will mean closing it.
However, with the Tata Group bidding for it, Air India appears poised for a fresh start with its founder.
While the government, which offers to sell its 100% stake in Air India and Air India Express and its entire stake (50%) in AI SATS, is willing to hand over the airline to the highest bidder by the end of calendar year 2021. The sources They say the same thing is likely to happen at the end of this prosecutor.
Rather than having to assume a predetermined level of AI debt of Rs 23 billion, eligible bidders under the current terms of sale will quote an enterprise value (EV) based on their estimate of the combined value of AI’s equity and debt. in your financial offer.
Winning bidders will be decided based on who is listing the highest EV value. At least 15% of this value must be paid in cash, while the rest can be contracted as debt.
The state is also likely to offer compensation to the winning bidder in lawsuits brought by foreign mega-corporations against AI to recover the arbitration awards they have won against India. AI is contesting these claims.
The government had received multiple expressions of interest for Air India. The transaction advisor shared the request for proposal along with the draft share purchase agreement with qualified bidders on March 30, 2021, for the submission of financial offers.
The Aviation Ministry has asked AI to prepare for post-divestment issues, such as having employees leave staff colonies within a certain period of time; transfer PF accounts to EPFO and ensure continuity of health benefits through CGHS.