New Delhi: Group Tata won a financial offer to acquire Carrier National Air India which was full of debt on Friday.
The decision marked the start of the central privatization program after hiatus almost two decades.
Secretary of the Department of Investment and Management of Public Assets (Depam) Tuhin Kanta Pandey and Civil Aviation Secretary gave a media direction in the number of financial offers received, the details of the sales process, the employee purchase status among other details.
Here are some main FAQs in sales: What is the winner’s offer? The government has set a reserve price of Rs 12,906 Crore for airlines.
The Tata Group has quoted an offer of 18,000 crore Rs winners to acquire Air India, higher than the reserve price.
From this, Rs 15,300 Crore is debt and the rest of Rs 2,700 Crore will cash.
Meanwhile, the consortium led by Spicejet promoters Ajay Singh has quoted the number of Rs 15,100 Crore’s financial offers.
When will it hand it up? The government aims to submit airline to Tata Group on December 2021.
What is the total Indian air debt? On August 31, 2021, the total airline debt was Rs 61,562 Crore.
Who cleanses the wins? A group of ministers consisting of Minister of Home Amit Shah, Minister of Finance Nirmala Sitharaman, Minister of Trade Piyush Goyal and Civil Aviation Minister Jyotiraditya Scindia cleared the offer of victory for Air India in October 4.
What will happen to existing employees? employee.
If there are employees who need to be taken into account, they will be given the option of the voluntary pension scheme (VRS), after the settlement of the first year of the bidder took over the airline.
What benefits will be given to existing employees? Gratification, Pension Funds and Medical Benefits of Post Pensions from existing and previous employees will be respected by Tata Group.
Free trips by government employees in Air India flights will stop postgrades, free lines for retired employees will be in accordance with industry practices.
How many employees have Air India? Air India has 12,085 employees – 8,084 permanent contractuals and 4,001.
In addition, Air India Express has 1,434.
In the next five years, around 5,000 employees will retire, said the Civil Aviation Secretary Rajiv Bansal.
Who will pay their extraordinary fees? Indian Air Employee India – which amounts to 1,332 crore RS in accordance with the report of Justice Dharmadhikari – will be paid by the government.
What is Indian air debt? Air India suffered a loss of Rs 20 Crore per day.
On August 31, airline debt was rs 61,562 crore.
What will happen to Indian Air Maharaja and other logos? In total, Air India has 8 logos and everything will be transferred to Tatas.
For 5 years, this logo cannot be transferred.
After completion of 5 years, the logo can be transferred to only Indians and not on foreign entities.
When is the privatization process begin? The process for displacmentation of Indian water and subsidiaries began in June 2017 with the approval of the ‘principle’ of the ccea.
The first round does not cause an expression of interest.
How many financial offers received? The government has received 7 expression of interest (EOIS) in December 2020.
However, 5 bidders must be disqualified because they cannot meet the requirements set in EOI, even after allowing them the opportunity to clarify.
What will be the next step? The next step is to issue the letter of intention (LOI) and then sign the following stock purchase agreement (SPA) which, the precedent provisions need to be fulfilled by a successful, corporate and government bidder.