Govt mulls allowing airlines with negative net worth to bid for Air India

The core group has now suggested that a company with a proven track record of running a successful airline be allowed to bid even if its net worth is negative

The government is likely to relax the eligibility criteria for Air India disinvestment by allowing airlines with negative net worth to bid. However, non-airline companies may be told to satisfy minimum net worth conditions to prove their financial strength.
 
The evaluation committee of Air India, after discussions with the Ministry of Civil Aviation, had suggested that all bidders be mandated to fulfil a minimum net worth criterion, a source said. However, when the Core Group of Secretaries on Disinvestment (CGD) met over the last two weeks to finalise the bidding norms, some members pointed out that setting high net