Air India Privatisation: Panel Okays Fresh EoI, SPA Drafts for Air India; Bids to Be Invited In January

A ministerial panel headed by home minister Amit Shah on Tuesday approved the drafts of expression of interest (EoI) and share purchase agreement (SPA) for the privatisation of debt-ridden Air India, but analysts were still sceptical about the deal being concluded in the current financial year, The Financial Express reported. The EoI will be issued later this month. The AI Specific Alternative Mechanism (AISAM) headed by Shah also approved a voluntary retirement scheme (VRS) as well as another debt restructuring plan for the airline, sources said, without elaborating. In June last year, the government called off the proposed sale of 76% stake in AI as an EoI elicited no response. AI won’t be a distress sale as it is a robust going concern and potential buyers could capitalise on its premium bilateral rights and parking slots across the world to revive its fortunes, the sources claimed. Read more