India's government, on January 7, approved a proposal to privatise Air India (AI, Delhi International), pledging that an expression of interest (EOI) document would be issued later this month.
A group of ministers led by Minister of Home Affairs Amit Shah approved the EOI for prospective suitors, and a public announcement via media advertising will be made within two weeks, officials involved in the sale process said, according to India's Business Standard.
The ministers also expressed approval to transfer an additional INR200 billion rupees (USD2.8 billion) in debt and liabilities to the Air India Assets Holding Ltd. (AIAHL) special purpose vehicle (SPV) to make the carrier more alluring to potential buyers. INR294 billion rupees (USD4.1 billion) have already been transferred to the SPV.
“The committee has approved the expression of interest, share purchase agreement, and restructuring of further debt today. The EOI will be open to bidders and the public shortly,” a government official said.
According to the Economic Times, the official added: “All issues have been cleared today and the EOI will come out within this month. The committee has also approved all proposals related to the debt transfer from Air India to the SPV.”
A second unnamed official told the Business Standard: “In-principle approval has been given to hive off a portion of additional debt and some liabilities such as dues to oil companies and airport operators as well as pending salary dues and benefits to permanent and retired employees.”
According to Air India's audited accounts, at the end of 2019 it had debts totalling INR583.51 billion (USD8.16 billion), including the sum already sent to the SPV, and assets worth INR280 billion (USD3.9 billion).
