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Govt extends deadline to submit initial bids for Air India to April 30
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Govt extends deadline to submit initial bids for Air India to April 30
Mar 13, 2020 4:10 AM

The government has extended the deadline to submit preliminary bids for national carrier Air India to April 30 from March 17 earlier. The last date for response to queries raised on preliminary information memorandum has also been extended to March 20 from March 16 earlier.

The government will now intimate the qualified bidders on May 14. Earlier, the government had expected to complete the initial round by informing about the qualified bidders by March 31.

CNBC-TV18 has learnt that the longer time gap may also have been given to let the coronavirus situation settle down and also to accommodate the recently made changes.

Recently, the government extended the deadline to submit written queries from February 11 to March 6 and the last date for the release of response to queries on preliminary information memorandum was also extended to March 16 from February 25 earlier.

On March 4, the Cabinet also said that non-resident Indians can hold up to 100 percent stake in Air India under the automatic route. This is seen as more of a clarification than a new rule.

On March 12, Union Aviation Minister Hardeep Singh Puri told CNBC-TV18 in an exclusive interaction that the divestment process of Air India will not be derailed due to the coronavirus situation.

"Don't see Air India divestment getting derailed due to coronavirus situation. We may look at marginal time adjustment for Air India divestment," Puri told the channel.

The Minister's comments come as the Indian civil aviation sector faces one of its toughest phase with a daily dip in bookings and cancellation or postponement of international travel plans.

Air India, the largest international airline from India, has been the among the worst hit due to the recent travel restrictions and advisories by countries abroad and the visa suspension advisory will also impact the airline.

The government has invited bids for 100 percent stake in Air India and the current deadline for submission of preliminary bids is March 17.

This is the second attempt of the government to sell the national carrier as it did not find any takers in the first round itself when it offered to sell 76 percent stake in Air India in 2018.

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