'Air India Divestment In Final Phases, Financial Bids For Airline Received By Transaction Adviser': DIPAM Secretary

The divestment process of Air India has entered its final phase now as financial bids have been received by transaction adviser for the airline.

The development was made public by the Secretary of Department of Investment and Public Asset Management who tweeted, "Financial bids for Air India disinvestment received by Transaction Adviser. Process now moves to concluding stage."

Earlier, the Central Board of Direct Taxation (CBDT) had mentioned that the buyer of a former state-run company can carry forward its losses and even claim up to 30 per cent of tax rebate on an annual basis.

The central government is targeting rounding up the sale of Air India prior to the end of the current fiscal. The Tata Group, through a holding company, and SpiceJet chairman Ajay Singh, in his personal capacity, are likely are reportedely in contention for acquiring the stakes in the state-owned airline.

Apparently, executives of Tata Group have visited multiple airline sites across India in the previous few months as they have bid for the airline through AirAsia India, Times of India reports.

The government along with the bidders have had to work on multiple aspects such as employee benefits along with the dealing of government guarantees as Air India’s divestment is expected to be the template for the upcoming strategic sales of other public-sector companies in the future.