DISINVESTMENT

air-india-disinvestment-delayed-further-due-to-coronavirus

Air India disinvestment delayed further due to Coronavirus

Covid-19 outbreak has left its impact on disinvestment process of Air India as the government has deferred the last date to submit EoIs for the national carrier by more than a month to April 30 which was to expire on Match 17, 2020.

It was requested by interested bidders and due to prevailing situation arising out of Covid-19. The decision was taken after India announced that it is suspending all visas till April 15.

It would be impossible for foreign bidders to function normally with the closures and suspension. Hence the extension has been given and there is a possibility of further extension if the situation doesn’t improve. There is little chance of the process being successful in the current situation which has already failed once.

14 Mar 2020
now-nris-can-acquire-100%-stake-in-air-india

Now NRIs can acquire 100% stake in Air India

The Centre has decided that NRIs can acquire a 100 percent stake in the public sector aviation company Air India as the decision was taken by the cabinet chaired by PM Narendra Modi. The government is looking for AI disinvestment.

The cap for the NRIs to acquire a stake in the national airlines was 49 percent earlier. It was announced that regarding the strategic sale of Air India, now NRIs can acquire 100 percent of stake in the airlines.

The government has initiated the process of divesting its share from Air India a long time back and is looking for suitable bidders. An attempt by the government to divest its stake in AI failed due to not getting potential buyers.

05 Mar 2020
air-india-disinvestment-delayed-further-due-to-coronavirus

Air India disinvestment delayed further due to Coronavirus

By IndianMandarins 14 Mar 2020

Covid-19 outbreak has left its impact on disinvestment process of Air India as the government has deferred the last date to submit EoIs for the national carrier by more than a month to April 30 which was to expire on Match 17, 2020.

It was requested by interested bidders and due to prevailing situation arising out of Covid-19. The decision was taken after India announced that it is suspending all visas till April 15.

It would be impossible for foreign bidders to function normally with the closures and suspension. Hence the extension has been given and there is a possibility of further extension if the situation doesn’t improve. There is little chance of the process being successful in the current situation which has already failed once.

now-nris-can-acquire-100%-stake-in-air-india

Now NRIs can acquire 100% stake in Air India

By IndianMandarins 05 Mar 2020

The Centre has decided that NRIs can acquire a 100 percent stake in the public sector aviation company Air India as the decision was taken by the cabinet chaired by PM Narendra Modi. The government is looking for AI disinvestment.

The cap for the NRIs to acquire a stake in the national airlines was 49 percent earlier. It was announced that regarding the strategic sale of Air India, now NRIs can acquire 100 percent of stake in the airlines.

The government has initiated the process of divesting its share from Air India a long time back and is looking for suitable bidders. An attempt by the government to divest its stake in AI failed due to not getting potential buyers.

bpcl-and-air-india:-govt-wants-protection-to-employees-in-sale

BPCL and Air India: Govt wants protection to employees in sale

By IndianMandarins 04 Feb 2020

The Centre is planning certain protection to employees in share sale agreement of BPCL and Air India as it does not want them a free hand to shed excess workforce. The NaMo Govt will follow a two-stage bidding process for selling its holding both PSUs. First preliminary interest from potential bidders is invited, followed by they being given access of data room on the companies for due diligence.

In the second stage, price bids are invited. While in the case of Air India, EoI has been invited by March 17, an offer seeking the same for BPCL is likely to be floated in the next few days. As far as the concern that if bidders will get a free hand to right-size companies after the acquisition, there will be certain protection to employees and there will be other conditionalities and this will be listed out in the share purchase agreement.

The government is selling its per cent stake in Air India but wants effective control to stay with Indian nationals. In the case of BPCL, the government is selling its entire 53.29 per cent stake in the company.

air-india:-puri-to-meet-trade-unions-amid-sale-process

Air India: Puri to meet trade unions amid sale process

By IndianMandarins 20 Jan 2020

New Delhi: Amid government’s attempt to sell stake in Air India, trade unions of the aviation company are likely to demand a VRS package at their second meeting with Minister of State for Civil Aviation Hardeep Singh Puri. He is likely to meet over a dozen Air India unions including unrecognised ones.

This is for the second time in a month over airline's privatisation plans. The government is planning to float Expression of Interest (EoI) for selling its entire 100 per cent stake in the loss-making flag carrier some time next week.

The minister had made it clear that privatisation was the only option before the government at the first meeting on January 2, 2020 to keep the airline afloat and sought employees cooperation in carrying out the disinvestment process.

Puri had also told unions that he would call them again after the meeting of the ministerial panel on Air India disinvestment. The GoM led by Union Home Minister Amit Shah on January 7 approved the plan to invite EoI and the sale-purchase agreement for the disinvestment of the state-run carrier.

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CMD Air India: Lohani may get extension?

By IndianMandarins 09 Jan 2020

Amid government’s approval of a draft document inviting expressions of interest by the end of January 2020 the outgoing Air India CMD Ashwani Lohani is tipped for another extension. Lohani’s tenure as CMD is coming to end on February 15, 2020.

Indianmandarins has reliably learnt that top authorities have arrived at a consensus to extend Lohani’s tenure which may be formalised soon.

Further, it may be underlined that about half of the debt has already been transferred to the SPV and the government may further approve transfer of Air India’s debt to a special purpose vehicle (SPV). However, it was not clear what the government plans to do with Air India’s large workforce, currently more than 20,000, including that of its subsidiaries. Air India has 128 aircraft in its fleet. A cash shortage has forced the grounding of 26 of its aircrafts.

stc:-what-does-govt-want-

STC: What does govt want?

By IndianMandarins 06 Jan 2020

Solution lies in the problem itself but it requires to be fixed. BSNL, Air India and several others are often in the lime-light but for State Trading Corporation (STC) appears to be daydreaming. There is no full time CMD for over three years and no full time director finance for over four years, a number of criminal and legal proceedings going on for recovering more than Rs 2,000 cr.
It is always easy to blame the government as several senior officials working in CPSEs say that government should close it down while some others say that moves to close STC would hamper recovery process and completion of criminal proceedings.

bpcl,-concor-and-air-india-sale-to-be-delayed;-likely-after-march

BPCL, Concor and Air India sale to be delayed; likely after March

By IndianMandarins 03 Jan 2020

It is likely that the government may not be able to complete sale of BPCL, Concor, and Air India by March-end. Actually the government has to respond to what the potential bidders ask for. Sometimes, they seek time to examine financial statements. Sometimes, they want to do physical due diligence.

The delay in divestment plans comes when the government’s fiscal deficit has touched 115 per cent of the FY20 Budget estimate by November. Besides, revenue from other sources such as taxes is also likely to fall short of the target. The government may miss the tax target of Rs 24.6 lakh crore by at least Rs 2 lakh crore on account of the corporation tax rate cut, lacklustre GST collections, and the economic slowdown. As much as 42 per cent of the revenue collections (excluding cess and surcharge) will go to states.

The government had set a disinvestment target of Rs 1.05 lakh crore for 2019-20. However, in FY20 so far, the government has managed to raise Rs 17,364 crore through disinvestment; 84 per cent of its disinvestment target is yet to be realised.

signals-for-sale-of-iocl’s-refinery-division-

Signals for sale of IOCL’s Refinery Division?

By IndianMandarins 22 Dec 2019

If some well-placed sources are to be believed many senior officials posted at the headquarters of Indian Oil Corporation Limited (IOCL) have started getting signals that Refinery Division may soon be up for sale. Insiders say that instead of presentations on ‘why not to sell Refinery Division’ the discussions appears to have taken a twist; ‘how to sell Refinery Division’. 

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