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Air India privatisation: Govt to ease bidding norms to attract buyers

Govt set to allow prospective suitors to bid on enterprise value

air india
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The decisions were taken by a committee of secretaries on Wednesday and will be sent to a group of ministers for an approval soon.

Arindam Majumder New Delhi
The government has decided to take another shot at privatising the debt-laden Air India with relaxed terms, as a postponement of the sale process would cost the exchequer an estimated Rs 12,000 crore in the next two years.

Rules will be changed to make it easier for prospective suitors to bid on enterprise value, a popular metric used in takeover deals. Enterprise value includes the equity value of a company along with short-term and long-term debt as well as any cash on the company's balance sheet.

This, the government believes, will entice buyers who till now had considered the debt amount as

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