New Delhi: The government has begun evaluation of financial offers received from the Tata Group and Founder of Spicejet for the acquisition of Air India, said source.
With this, the national flag carrier privatization process has moved to the next phase because the government seems to conclude the agreement.
Financial offers are being evaluated with confidential reserve prices and offers that offer the highest price above the benchmarks will be accepted.
If successful, this will mark the return of Indian water to the folding after 67 years.
The Tata Group established Air India as a Tata Airlines in October 1932.
The government nationalized airline in 1953.
Tatas operating the main full service operator, Vistara, in partnership with Singapore Airlines.
It is not immediately known if the group includes its own offer or through the cheap AirAsia Indian operator.
Singapore Airlines are said to be not interested in participating in privatization programs because they will only add Vistara and its own financial problems.
The government tried to sell 100 percent of its shares in state-owned national airlines, including 100 percent of 100 percent share ownership at AI Express Ltd and 50 percent in Air India Sats Airport Supply Private Ltd.
The sales process, which began in January 2020, faced a delay due to Covid-19 pandemic.
In April 2021, the government asked prospective bidders to submit a financial offer.
The last day to put a financial offer was September 15.
Tata Group is among several entities that have placed an interesting initial expression (EOI) in December 2020 to buy Maharaja.
With the previous efforts since 2017 failed to get significant interests and after receiving feedback from potential investors, the government in October last year sweetened EOI clauses relating to Indian water debt transfers to new investors, providing bidder flexibility to decide on the quantum of humongous debt they wanted to absorb .
In accordance with Indian Air Eoi floated by the Department of Investment and Public Asset Management (DPAM) in January 2020, from the total airline debt of 60,074 crore on March 31, 2019, the buyer will be asked to absorb Rs 23,286.5 Crore.
The rest will be transferred to Air India Asset Holding Ltd (Aiahl), special purpose vehicles.
Air India has suffered losses since the merger with Indian Airlines domestic operators in 2007.
Airlines, formed by Tatas as a letter carrier in 1932, will provide a successful bidder control from 4,400 international landing slots and 1,800 at the domestic airport, and 900 slots on Airport abroad.
In addition, the bidder will get 100 percent of the ARM Sleeve Water Express and 50 percent of Aisat, which provides cargo services and land handling at the Indian airports.