Asean Travel News Travel News Agency in Delhi
The Government of India has extended the deadline of bidding for sale of its national carrier Air India (AI) by another two months till June 30. This decision has been taken considering paused economic activity all over the world due to the coronavirus (COVID-19) pandemic.
The deadline for bids by investors in the Air India closeout has been extended for the second time. The process to sell debt ridden Air India was started on 27 January.
On Tuesday, April 28, The Department of Investment and Public Asset Management (DIPAM) has issued a revised Expression of Interest for the sale of Air India, stating that the deadline has been extended after “request received from the IBs (interested bidders) in view of the current situations due to COVID-19 pandemic.
The letter of interest was previously issued in January 2020 and the deadline for the bid was March 17 which was later extended to April 30. But now it has been further extended till end of the June.
The DIPAM said on its website that the date for intimation to Qualified Interested Bidders (QIB) has been also extended by 2 months till July 14. “Further changes with respect to the Important Dates, if any, will be communicated to the Interested Bidders subsequently,” the department said in the notice dated April 28.
To curb the spread of COVID-19 pandemic, the government has imposed lockdown which has paralyzed the economic activities across the country. The aviation sector is suffering most by COVID-19 as all airlines are cancelling their passenger flights and announcing layoffs and pay cuts for their employees including cabin crew.
For the current fiscal, the budget has pegged disinvestment proceeds at Rs. 2.10 lakh crore. This includes Rs. 1.20 lakh crore from CPSE share sale and Rs 90,000 crore from share sale in public sector banks and financial institutions, including listing of insurance behemoth LIC.
