Final bids for acquiring state-run carrier Air India were recently submitted by Tata Sons and SpiceJet promoter Ajay Singh. The government could select the winner of the bid in approximately three weeks, reported Business Standard.
Two high-level committees will decide the reserve price for the national carrier within this period, added the report. This will be one of the final steps in the Air India divestment process, following which the government will plan to complete the transaction by December.
The reserve price of the airline will be decided by an inter-ministerial group (IMG) head by the secretary of the Department of Investment and Public Asset Management (DIPAM), based on inputs from government-appointed valuers.
Once the final reserve price is determined, the proposal will be floated before the Air India Specific Alternative Mechanism (AISAM), which is heading by Union Home Minister Amit Shah. AISAM members include the finance minister, commerce minister and aviation minister.
While the government wants to stick to the December deadline for completing the entire process, it will depend on whether the government and the winner of the bid are in agreement.
It may be noted that the terms and conditions have been finalised with buyers earlier.The deadline of the deal completion will also depend on timely approval from the Competition Commission of India (CCI) and the lenders to the national carrier.
Air India had failed to attract a bidder in 2018 when the government floated an offer to sell a 76 per cent stake.
However, the government is looking to sell its entire stake in Air India this time.The offer includes all of Air India and Air India Express and a 50 per cent stake in the ground handling capacity of AISATS.
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