Air India Disinvestment Process

The Air India Employees Provident Fund trust and Indian Airlines Employees Provident Fund trust are governed by the Provident Fund Trust Act, 1925

Industry executives and investment bankers said there is less chance of the process being successful in the current situation as business houses, including airlines, are looking to conserve cash

After failing to attract a single bid in 2018, the government has this time sweetened the offer.

Amid continuing uncertainty over the fate of the national carrier, the official said there is also need for funds to restart operations of 12 grounded narrow-body planes

Last month, the Cabinet had approved a strategic divestment of the government's 53.29 per cent stake in BPCL, along with transfer of certain management control

Here are some of the issues on the table

The finance minister stated the strategic disinvestment of the two state-run companies is critical for the government to meet its disinvestment target of Rs 1 trillion for the current fiscal year

Significant interest among large companies to acquire the airline

Among the key issues holding Expression of Interest (EoI), first stage of bidding, is whether FDI norms have to be relaxed to allow foreign airlines to take full control

Privatisation that is not carefully designed does little to help the economy - and it can be politically costly

Taking lessons from last year's failed privatisation attempt, the government is unlikely to hold any residual stake in the airline

14 Air India properties various cities have been put on sale

Modi's most high-profile privatization plan ended in a whimper on May 31 as a deadline for prospective suitors passed by with none showing interest in the airline mired in almost $8 billion of debt

The government proposes to divest 76 per cent of Air India along with its shareholding in Air India Express and its ground handling subsidiary, AISATS

India will announce the qualified bidders for the beleaguered airline on June 15

As far as the employees clause goes, there is only a one-year lock-in period, post which the government has adopted the same approach as it has for every other disinvestment

The panel held a couple of meetings and transaction advisors would be appointed soon: Jaitley