Air India Ropes In SBI Caps, Sets Up Five Teams For Divestment Process
Preparing for strategic disinvestment, national carrier Air India has roped in SBI Caps to advise on the future course and has constituted five teams to work on various aspects of the stake sale process.
As part of efforts to revive the loss-making airline, the government has decided on strategic disinvestment and the modalities are being worked out.
Against this backdrop, Air India has constituted five project teams headed by senior officials to deal with various aspects of the disinvestment. Besides, SBI Caps would help the carrier with disinvestment matters, including preparing business plans for subsidiaries that would be divested.
In a communication, Air India Chairman and Managing Director Rajiv Bansal said it is necessary to constitute various teams to work aggressively with regard to the timelines laid by the ministry, so that the the government's objective is achieved in a “time-bound manner”.
Also Read: Air India Receives Good Response To Auction Of 14 Properties
The “disinvestment of Air India and its subsidiaries has commenced and the transaction advisor, legal advisor and asset valuer are in the process of being appointed”, as per the communication dated Nov. 18.
SBI Caps will prepare 3-5 year business plans for subsidiary companies to be divested, help obtain approvals from the consortium of banks for the transfer of real estate properties and other security. Besides, it would assist Air India on other divestment matters.
The airline is staying afloat on taxpayers' money and the airline has a debt of over Rs 50,000 crore.
On June 28, the Cabinet Committee on Economic Affairs had given its in-principle for strategic disinvestment of Air India and five of its subsidiaries. Subsequently, an Air India-specific Alternative Mechanism was set up to guide the process.
The ministerial group is looking into treatment of Air India's unsustainable debt, hiving off of certain assets to a shell company, demerger and strategic disinvestment of three profit-making subsidiaries, among other aspects.
Also Read: When Air India Was Privatised, Almost
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
