India finalised draft norms for inviting expressions of interest to sell Air India, according to a government official, after a similar bid to privatise the debt-laden national carrier failed last year.
A Group of Ministers, led by Home Minister Amit Shah, approved the draft for inviting expressions of interest for divesting the government’s controlling stake in the carrier, the official told BloombergQuint after the meeting today. The final norms will be issued by January-end, the official said on the condition of anonymity as the information isn’t public yet.
The meeting was also attended by Finance Minister Nirmala Sitharaman, Aviation Minister Hardeep Singh Puri and Commerce Minister Piyush Goyal. Puri, without divulging details, said the meet was “productive” and a statement would be issued soon.
The official cited earlier said the group decided that there won’t be any change in the substantial ownership clause, suggesting that the control of the airline would remain with an Indian investor. Foreign airlines are barred from buying more than 49 percent in a local carrier, and foreign investors, other than airlines, need the government’s approval to buy 50 percent or more.
Also Read: Debt-Laden Air India Will Have to Shut Down If Sale Offer Flops
Air India is saddled with a debt of more than Rs 60,000 crore and loses Rs 20-25 crore daily.
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