GoM- A group of ministers (GoM) headed by Union Home Secretary Amit Shah will meet soon to make a decision on the successful bidder for Air India, a senior government official said.
“Air India’s [AISAM] specific alternative mechanism will meet soon to decide,” the official told The Hindu.
AISAM is the name given to the GoM headed by Mr. Shah. It includes Minister of Finance Nirmala Sitharaman, Minister of Commerce Piyush Goyal and Minister of Aviation Jyotiraditya Scindia.
The statement means that although a decision has been made on who bagged Air India by the committee of secretaries, it has yet to be approved by the GoM. Earlier this month, Tata Sons and a group led by SpiceJet’s Ajay Singh filed their financial offers. for Air India.
The government will sell its 100% stake in Air India, Air India Express and a 50% stake in ground handling company AISATS. Bids for the national carrier are being sought at enterprise value instead of equity value, as the government changed the tendering parameter for Air India.
According to the plan, 15 percent of the company’s total value will have to be prepaid in cash to the government and the remainder will be used to reduce the airline’s debt burden.
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