As India gears up to sell its prized national carrier Air India, Secretaries of the Department of Investment and Public Asset Management Secretary and Civil Aviation will brief media at 4 p.m. on Friday.
India is planning to privatise the ailing carrier. The government has set a deadline for the end of the year.
Bloomberg on Oct. 1 first reported that a panel of ministers accepted a proposal from bureaucrats that recommended Tata Sons Pvt.’s bid for the airline, ahead of an offer from entrepreneur Ajay Singh.
That will bring the 'Maharaja' back to the Tata Group, more than half a century after it ceded control to the state.
India plans to divest 100% stake in the ailing national carrier. According to the plan, 15% of the total enterprise value will have to be paid upfront in cash to the government and the rest will be used to pare the airline’s debt.
Air India’s handover is a key victory for Prime Minister Narendra Modi, who has embarked on a privatisation plan to plug a widening budget deficit. Multiple governments have tried to sell the airline but those attempts were either met with political opposition or a lack of interest from potential buyers.
