The government is going to organise Air India roadshows in Singapore this week for privatisation of ailing state-run airline.
Sources said Disinvestment. Secretary T.K. Pandey will be in Singapore this week along with senior aviation ministry and Air India officials to brief the potential buyers to complete stake sale in the airline and start the roadshows.
There are possibilities now for Air India Expression of Interest to be floated this month after this meeting. The national carrier has a debt of Rs 57,000 crore and the bids will be invited for 100 percent stake.
Once the roadshows begin, this will mark the start of privatization of Air India at the ground level, sources said.
Civil Aviation Secretary Pradeep Singh Kharola and Air India management have been discussing with the trade unions assuring them of security they are fearing for job losses after privatization. In a bid to clean up the balance sheet of Air INDIA before stake sale, around Rs 30,000 crore of its debt is proposed to be repaid by way of proceeds from the issuance of bonds by its special purpose vehicle, Air India Asset Holding Ltd (AIAHL).
Recently, the Cabinet has approved changes in the process of disinvestment where the prospective bidders will be heard in the roadshows before EoIs are floated so their concerns are addressed while drawing up the Expression of Interest and government gets investors’ interest in the CPSEs (central public sector enterprises).
