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Centre Relaxes Air India Sale Terms
Why is it in news?
- The Union Government revised bidding parameters for 100% stake sale in Air India.
- This is the government’s third effort to woo buyers.
Details:
- Government allowed private players to quote an enterprise value (EV) for the airline.
- Bidders will be given seven days to pose queries on the new bidding parameters after which they can submit their bids by November 14.
- The government will announce the qualified bidder by December 28.
- The process however, would not change the valuation of the airline.
Background:
- The union government is in the process of the proposed disinvestment of debt-laden Air India.
- Government has decided to sell its entire 100% stake in Air India.
- The first attempt in 2018 had planned to retain a 24% stake in Air India.
- Air India has witnessed a fall in the market during last four decades.
- After the entry of other private players, Air India started facing competition after a long period of monopoly.
- The market share of Air India declined from 19.4% in 2013 to around 13.3% in May 2017 in the domestic sector.