Centre likely to float request-for-proposal for Air India privatisation

The government may float a request-for-proposal (RFP) for privatisation of Air India, in the next 7-10 days, a move that will help the interested bidders in getting clarity on contingent liabilities of the national carrier.

 

The RFP is in the approval process and will soon be issued by the Department of Investment and Public Asset Management (DIPAM), said a government official. It will give details on the current share of AI and AI Express in total bilateral rights, besides contingent liabilities due to retired employees.

 

The treatment of liability of Rs 207 crore for wage arrears of employees working on narrow body fleet of the airline, will also be clarified.

 

With the RFP, interested bidders will get access to documents that will help them in carrying out due diligence, after which financial bids will be invited.