The government has initiated the process of privatising 2 subsidiaries — AIASL and AIESL — of erstwhile national carrier Air India, an official said.
“The Department of Investment and Public Asset Management (DIPAM) has initiated investor meetings and roadshows to gauge interest in AIASL and AIESL. We will soon invite EoIs from interested bidders,” the official said.
A debt-laden Air India was sold to Tata Group in October last year for ₹18,000 crore. The actual handover to Tatas happened on January 27, 2022.
However, four Air India subsidiaries —Air India Airport Services Ltd (AIASL), Air India Engineering Services Ltd (AIESL), Alliance Air Aviation Ltd (AAAL), and Hotel Corporation of India Ltd (HCI) — and other non-core assets, painting and artefacts, besides, non-operational assets were not part of the deal.
These subsidiaries and non-core assets valued at about ₹15,000 crore have been transferred to an SPV — Air India Assets Holding Ltd (AIAHL).
The government had then said these subsidiaries and non-core assets of the carrier would eventually be sold off. Towards that goal, DIPAM has initiated the exercise of investor meetings for privatisation of AIASL and AIESL.
As of August last year, Air India had a total debt of ₹61,562 crore. Of this, the Tata Group took over ₹15,300 crore liabilities and the rest 75% or around ₹46,000 crore was transferred to AIAHL.
The government has squared off with Air India debtors its share of pending dues.
The government, in the current fiscal year, has budgeted to raise ₹65,000 crore from CPSE disinvestment. So far, it has raised about ₹25,000 crore.