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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A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
Hard path to growth
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.