NEW DELHI: The spread of Coronavirus, volatile market situations and dip in the global crude oil prices has forced the government to put its major divestment plans, including Air India and BPCL and Shipping Corporation of India, on the back seat.
According to the finance ministry, as there is fear of recession in the aviation sector mainly on account of the virus spread, this is not the best time to invite bids. Even large businesses are witnessing this epidemic closely. So, the government is likely to extend the deadline submission of preliminary bids for Air India from April 30 from June 1.
“As per our own internal assessment, the aviation sector is the worst affected. International businesses have postponed the event till May 31. Keeping in view the recent development, the suggestion is to extend the deadline for submission of preliminary bid from April 30 to June 1,” said an official, finance ministry.
The government had earlier in 2018 attempted to sell Air India, had restarted the process in January. Earlier, the government has extended the deadline for submission of preliminary bids for Air India to April 30 from March 17. The Cabinet Committee on Economic Affairs has allowed NRIs to own 100 percent stake in Air India.