India likely to ease Air India offer, let suitors decide on taking debt

Current rules require bidders to take over the carrier's $3.3 billion of aircraft debt, deterring buyers

India is ready to sweeten the deal for the sale of Air India Ltd., the loss-making state-owned carrier, a finance ministry official said.

The government is considering allowing potential suitors for Air India decide how much of the flag carrier’s debt they want to take on as part of the deal, Disinvestment Secretary Tuhin Kanta Pandey said in an interview in New Delhi. The bid date is also likely to be extended beyond Oct. 30 to give investors time to make an offer, he said.

“We will remove the constraints that the current structure of the transaction poses for investors,” Disinvestment Secretary