INSUBCONTINENT EXCLUSIVE:
The central government owns 100 per cent equity of Air India.New Delhi: The central government might not sell its stake in the ongoing
divestment process of the national passenger carrier Air India, if bids do not meet a minimum threshold value or floor price estimated for
the airline.Civil Aviation Secretary Rajiv Nayan Choubey said that the government had hired asset and enterprise valuers, who have estimated
a minimum floor price or net worth of Air India under the current divestment norms.According to Choubey, just like any bidding process, the
qualified bids have to be above the floor price
"The government retains the right to sell or not to sell Air India, if the bid price is found to be inadequate," Choubey told reporters
here.However, Civil Aviation Secretary said that there has been a substantial interest that has been generated around the process and that
the government expects a robust response.As per the process timeline, the submission deadline for the 'Express of Interest' (EOI) bids has
been extended to May 31, 2018.Consequently, the date for the "intimation to the Qualified Interested Bidders" (QIB) has also been extended
to June 15 from May 28.It is expected that by August-end, the government will be able to determine the highest bidder.The highest bidder
also needs to meet regulatory requirements such as security clearances and substantial ownership and effective control should vest with
Indian nationals.On March 28, the central government had issued a Preliminary Information Memorandum (PIM) inviting "EoI" for the strategic
divestment of AI, along with the airline's shares in AIXL (Air India Express) and AISATS (Air India SATS Airport Services) from private
entities including the airline's employees.The central government owns 100 per cent equity of Air India
In turn, the airline holds full stake in Air India Express, while it holds 50 per cent stake in the joint venture AISATS.Accordingly, it has
been planned to divest 76 per cent government stake in AI, 100 per cent in AIXL and 50 per cent in AISATS.(Except for the headline, this
story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
