May 19, 2024

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Govt extends deadline to bid for Air India by two months till Aug 31

The federal government has yet again prolonged the deadline to bid for Air India by two months till August 31 as the coronavirus (Covid-19) fallout has disrupted economic routines globally.

This is the 3rd time the deadline has been prolonged.

The divestment course of action for the national carrier was initiated on January 27. Issuing a corrigendum to the Expression of Interest (EoI) for sale of Air India, the Section of Expense and Community Asset Administration (DIPAM) explained the deadline has been prolonged in check out of the “request acquired from the IBs (interested bidders) in check out of the prevailing scenario arising out of Covid-19.” Whilst issuing the EoI in January, the previous day for bids was held at March seventeen, which was later prolonged till April thirty. This was more prolonged to June thirty, and now till August 31.

Also, the day for intimation to Skilled Intrigued Bidders (QIBs) has been prolonged by two months till September 14, the DIPAM explained in the corrigendum posted on its internet site.

“More improvements with regard to the Important Dates, if any, will be communicated to the Intrigued Bidders subsequently,” it additional. The Covid-19 pandemic and subsequent lockdowns have disrupted economic routines globally.

The aviation sector has been strike really hard by the coronavirus pandemic, with airlines cancelling flights and announcing pay back cuts for workforce. The federal government has presently prolonged the time specified to investors to bid for its overall 52.98 for each cent stake in Bharat Petroleum Corp Ltd (BPCL) to July 31. The initial deadline was May possibly two, which was prolonged till June 13. Immediately after its unsuccessful bid to promote Air India in 2018, the federal government in January 2020 restarted the divestment course of action and invited bids for selling one hundred for each cent fairness in the point out-owned airline, together with Air India’s one hundred for each cent shareholding in AI Convey Ltd and 50 for each cent stake in Air India SATS Airport Services Private Ltd.

In 2018, the federal government experienced available to promote seventy six for each cent stake in the airline.

Of the airline’s full financial debt of Rs 60,074 crore as of March 31, 2019, the consumer would be required to soak up Rs 23,286.5 crore, whilst the relaxation would be transferred to Air India Property Holding Ltd (AIAHL), a specific reason motor vehicle.

For the recent fiscal, the Finances has pegged disinvestment proceeds at Rs two.10 trillion. This involves Rs one.20 trillion from CPSE share gross sales and Rs 90,000 crore from share gross sales in general public sector financial institutions and fiscal institutions, together with listing of insurance coverage behemoth LIC.

The federal government has presently kickstarted the course of action of range of transaction advisor for the initial general public giving (IPO) of Life Insurance policy Company.