GOVERNMENT MEETS AIR INDIA SUITORS AMID BIDS’ EVALUATION

NEW DELHI: Senior government officials on Wednesday met representatives of the Tata Group and businessman Ajay Singh, the twwo bidders for Air India, as the government evaluates their financial bids, a person aware of the matter said.

The government is looking to conclude the divestment process of the national carrier by the end of the ongoing fiscal year and could make an announcement about the winning bidder in the coming days, the person added, requesting anonymity.

According to a second person, RBSA Advisors and EY, who are advising the government on the sale, on Tuesday made a presentation on the airline’s valuation to the government.

Tuhin Kanta Pandey, secretary of the finance ministry’s Department of Investment and Public Asset Management (Dipam), didn’t respond to text messages.

A spokesperson for Tata Group didn’t immediately respond to a query. Ajay Singh, chairman and managing director of no-frills carrier SpiceJet Ltd, who has bid for the national carrier in his personal capacity, didn’t respond to a text.

Press Trust of India on Wednesday reported that the financial bids for Air India are being evaluated against an undisclosed reserve price and that the bid offering the highest price above that benchmark would be accepted.

Air India, unprofitable since a merger with the erstwhile state-run Indian Airlines in 2007-08, had accumulated losses of as much as ₹70,820 crore till 31 March 2020, according to the latest available data.

The government aims to divest its entire stake in Air India before the end of the fiscal after failing to find any buyer for a 76% stake in 2018.