STOCK MARKET BSE NSE

Centre to initiate Air India’s disinvestment process soon

The Centre is likely to issue the expression of interest (EoI) and the Share Purchase Agreement (SPA) for Air India’s disinvestment early next week.

Published: 18th January 2020 11:17 AM  |   Last Updated: 18th January 2020 11:17 AM   |  A+A-

Air India, Aviation

Air India (File photo | Reuters)

By Express News Service

NEW DELHI:  The Centre is likely to issue the expression of interest (EoI) and the Share Purchase Agreement (SPA) for Air India’s disinvestment early next week.With the losses of the airline mounting, the disinvestment of Air India is among the top priorities of NDA 2.0 government. Sources said that the expression of interest and the SPA are likely to be in public domain by next week.

The proposal for disinvestment was approved in a group of ministers (GoM) meeting recently on January 7 headed by Union Home Minister Amit Shah. Union finance minister Nirmala Sitharaman, Commerce Minister  and Railways minister Piyush Goyal and Civil Aviation minister Hardeep Puri were also part of that meeting.

Sources said to attract investors, government has also approved major debt transfer of the national carrier to a special purpose vehicle (SPV). They said that nearly 80 per cent of total debt will be transferred and the government is likely to keep only Rs 10,000crore debt in the airline’s books. Earlier, nearly Rs 29,400 crore was transferred to the SPV. 

Air India chief Ashwani Lohani had recently said that rumours of disinvestment are all baseless. In 2018, the Centre had proposed to sell 76 per cent equity share capital as well as transfer the management control to private players but was unsuccessful.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp