Govt Will Sell 100% Of Air India To Private Firms; BJP Leader Calls This ‘Anti-National’ Move
Decks are now cleared, and the objectives clearly outlined.
Govt of India wants to sell 100% of Air India to private players and they have invited bids for the same as well.
However, this decision to sell 100% of Air India has angered a BJP leader, and he has threatened to drag PM Modi to court over this.
He has described this move as anti-national.
Govt To Private Players: Buy 100% Of Air India
Govt. of India has now invited fresh bids from private companies, asking them to buy 100% stake in Air India. If any private player is able to meet the guidelines, and if they bid is successful, then it will make Air India 100% private company.
Few months back, Govt. has unsuccessfully attempted to sell 76% of Air India, but this time, they are offering 100%. Ernst & Young LLP India will be advisors for this transaction.
Reports had come in, that Air India will shut down, if they are not able to find any buyer.
Some interesting pointers, related to this newest campaign launched by Govt to sell Air India to private firms:
- Govt. has offered to sell full 100% stake in Air India, AI Express, and 50% stake in ground handling JV AI-SATS
- The interested parties are thereby required to submit their bids by 5PM on March 17, 2020, which is the deadline
- Successful bidders will be announced on March 31st, 2020
- These dates can be changed as well
- Successful bidders will only handle Rs 23,286 crore of debt of Air India, once they take over. This is 30% less than what Govt had placed as a condition last time, when successful bidders were asked to accept debt of Rs 33,392 crore (debt of Rs 24,576 crore and current liabilities of Rs 8816 crore)
- Successful bidders will not have the possession and control over Nariman Point HQ in Mumbai and the corporate HQ in Delhi near Connaught Place. Besides, tons of paintings and antiques with Air India will also not be handed over. However, these locations can be used for the transition phase, in the first couple of years.
- As of now, Air India has a combined debt of Rs 58,282 crore, with a fleet of 122 aircraft. AI Express has a debt of Rs 1791 crore, with a fleet of 25 aircraft.
- Overall, there are 13,269 employees on payroll of Air India
BJP Leader Calls It Anti-National Move
Senior BJP leader and MP Subramanian Swamy has condemned this move by Govt to sell 100% stake in Air India to private companies.
He has threatened to drag Govt to Court over this, as he described this as an anti-national move.
He tweeted: “Air India disinvestment process restarts today. THIS DEAL IS WHOLLY ANTI NATIONAL and I WILL FORCED TO GO TO COURT. WE CANNOT SELL OUR FAMILY SILVER (sic),”
There has been no reaction from the Govt., on their own leader opposing this privatization move.