Amit Shah-led ministerial panel to soon approve Air India sale
Clarification comes amid reports that Tata Sons may have won the bid
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Amid the buzz of the Centre approving Air India sale to Tata Sons, two government officials said the highest decision-making body constituted for the national carrier’s divestment was yet to meet to approve the transaction.
The government is looking to complete the sale of Air India as early as this month.
The Air India Specific Alternative Mechanism (AISAM), headed by Home Minister Amit Shah, is yet to meet to approve the sale of Air India, an official said. The panel is expected to meet soon to grant a final nod to the sale of the national carrier. The members of the panel include Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Aviation Minister Jyotiraditya Scindia.
The Core Group of Secretaries, headed by the cabinet secretary, has held several rounds of consultations and is learnt to have suggested Tata Sons as the suitable candidate for taking over the national carrier. However, Ajay Singh had placed a “competitive bid” for the airline, the second official said.
Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM), on Friday tweeted: “Media reports indicating approval of financial bids by Government of India in the AI (Air India) disinvestment case are incorrect.”
The government has considered the future cash flow projection of Air India, its brand value, and intangible assets like bilateral rights and slots in foreign airports to set the reserve price for the airline. The indicative reserve price for Air India would be in the range of Rs 15,000-20,000 crore, Business Standard reported earlier.
The government expects the final bid to at least match the reserve price. But it may still go ahead with the disinvestment process even if the bid quoted is lower than the reserve price.
The government is looking to complete the sale of Air India as early as this month.
The Air India Specific Alternative Mechanism (AISAM), headed by Home Minister Amit Shah, is yet to meet to approve the sale of Air India, an official said. The panel is expected to meet soon to grant a final nod to the sale of the national carrier. The members of the panel include Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Aviation Minister Jyotiraditya Scindia.
The Core Group of Secretaries, headed by the cabinet secretary, has held several rounds of consultations and is learnt to have suggested Tata Sons as the suitable candidate for taking over the national carrier. However, Ajay Singh had placed a “competitive bid” for the airline, the second official said.
Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM), on Friday tweeted: “Media reports indicating approval of financial bids by Government of India in the AI (Air India) disinvestment case are incorrect.”
The government has considered the future cash flow projection of Air India, its brand value, and intangible assets like bilateral rights and slots in foreign airports to set the reserve price for the airline. The indicative reserve price for Air India would be in the range of Rs 15,000-20,000 crore, Business Standard reported earlier.
The government expects the final bid to at least match the reserve price. But it may still go ahead with the disinvestment process even if the bid quoted is lower than the reserve price.