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EY working on govt's Air India disinvestment, to issue EoI soon

The firm has been directed to close the accounts for FY19 and provide updated data for EoI to take the disinvestment process forward

IANS  |  New Delhi 

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Air India

The government has put top consultancy firm to work for divesting its stake in flag carrier and "quickly" issue expression of interest (EoI).

"continues to be the transaction advisor for the sale of We have been directed to close the accounts for FY19 and provide updated data for EoI to take the process forward," said a senior official.

"Until the transaction gets completed is our advisor. They will be paid their fees after process is complete. The instruction now is immediately start the process for EoI. Of course, approval of the Union Cabinet will be required for it," he added.

The development comes close on the heels of Prime Minister's Office (PMO) directing the Aviation Ministry to speed up the process of strategic of Air India and three of its subsidiaries.

In a letter to Air India Chairman Ashwani Lohani, Civil Aviation Secretary Pradeep Singh Kharola had advised to finalise the financials of Air India and its subsidiaries by end of June, 2019.

"Also, the accounts for FY19 would form the basis of bidding. Therefore, it is necessary that they are prepared with utmost caution so as to reflect the correct financial status," Kharola had written in the letter which has been reviewed by IANS.

The Aviation Secretary directed the airline to get contingent liabilities and account receivables verified thoroughly besides a physical verification of the inventories. A list of pending litigations is also required to be drawn up.

The government had last year initiated the process to sell majority 74 per cent stake in the national carrier but the plan proved a damp squib with no private investor turning up for the offer.

In view of rising fuel price and weak investment environment, the government had put the process on hold maintaining that it would be taken up after Lok Sabha elections 2019.

First Published: Fri, May 24 2019. 15:02 IST