Number of the week: 100 per cent

Business Standard
30th January

100 per cent: Two years after a failed attempt, the govt has launched its biggest privatisation exercise, by agreeing to sell its 100 per cent holding in Air India, instead of 76 per cent offered earlier.

  • Also on offer are Air India subsidiary Air India Express, and joint venture Air India SATS Airport Services
  • Under sweetened deal terms, the govt has offered full management control, reduced debt, a leaner organisation and flexibility to form a consortium.
  • The govt has also announced that it will absorb 30 per cent more in debt and liabilities than earlier.
  • The net worth eligibility for bidders has been reduced to Rs 3,500 crore from Rs 5,000 crore earlier.
  • The govt has also reduced the lock-in period from 3 years to 1 year which means the buyer will be allowed to transfer equity shares of Air India after a year

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