Govt mulls allowing airlines with negative net worth to bid for Air India
The
government is likely to relax the eligibility criteria for Air India
disinvestment by allowing airlines with negative net worth to bid.
However, non-airline companies may be told to satisfy minimum net
worth conditions to prove their financial strength.
The
evaluation committee of Air India, after discussions with the
Ministry of Civil Aviation, had suggested that all bidders be
mandated to fulfil a minimum net worth criterion, a source said.
However,
when the Core Group of Secretaries on Disinvestment (CGD) met over
the last two weeks to finalise the bidding norms, some members
pointed out that setting high net worth as an eligibility condition
would block the prospects of many airline companies.
In
fact, the difference in opinion between the two government bodies has
led to a delay in the announcement of the expression of interest.
The
core group has now suggested that a company with a proven track
record of running a successful airline be allowed to bid even its net
worth is negative.
The
CGD is headed by the Cabinet secretary and comprises secretaries to
the Departments of Economic Affairs, Revenue, Expenditure, Public
Enterprise, Corporate Affairs, Legal Affairs, and Civil Aviation.
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