Financial bids for the sale of the government’s entire stake in the state-owned carrier Air India are likely to be in by September 15, Parliament was informed on Thursday.
The government also informed the House that Cairn Energy’s and Devas Multimedia’s lawsuits in the US District Court for Southern District of New York seeking declaratory and money judgment against the national carrier as an alter ego of the government of India won’t impact the ongoing disinvestment process of the airline.
Cairn and Devas sought direction from the court to hold the airline company liable for payment towards the arbitration award that they won against the government of India. The government has challenged/challenging the arbitration awards.
“The request for proposal (RFP) along with draft share purchase agreement (SPA) have been shared with qualified interested bidders by the transaction adviser on March 30, 2021, for submission of financial bids. The financial bids are likely to be received by September 15, 2021,” minister of state for civil aviation VK Singh told the Lok Sabha.
Tata Group was among the ‘multiple’ suitors that had put in preliminary bids for the loss-making airline in December 2020. The government is selling its entire 100% stake in the ailing carrier that has been bleeding ever since its amalgamation with Indian Airlines in 2007.
The bidders will then have to get security clearance from the home ministry, which may take another