New Delhi, Sep 22 (IANS) The government has invited proposals to appoint an “Asset Valuer” for national passenger carrier Air India, its subsidiaries and joint ventures (JVs).
According to the Ministry of Civil Aviation, the “asset valuer” will carry out valuation of land and buildings, aircraft including airframes and engines, spare engines, maintenance repair and overhaul facilities, among others.
“The government of India (GoI) has ‘in-principle’ decided to consider the disinvestment of the AI group as a whole or its constituents fully or part thereof through strategic sale with transfer of management control,” a “Request for Proposal” document issued on Thursday by the ministry said.
“For this purpose, Ministry of Civil Aviation on behalf of Government of India, requires the services of reputed asset valuer to carry out the valuation.”
In an unrelated development, the Department of Investment and Public Asset Management on September 14, 2017, had invited bids from firms to appoint advisers to guide the government on financial and legal issues associated with the strategic disinvestment.
Earlier, a ministerial group was formed to look into the disinvestment modalities.
The group — Air India-specific Alternative Mechanism — headed by Finance Minister Arun Jaitley is mandated to guide the divestment process and to decide on key issues such as treatment of AI’s debt and hiving-off of its assets.
The airline, under a massive debt burden of Rs 50,000 crore, had posted an operating profit of Rs 105 crore in 2015-16. For the 2016-17 fiscal, the company is expected to report an improved operating profit margin.
The AI group operates to over 40 international destinations and over 70 domestic stations. It has an operating fleet of 142 aircraft comprising 65 A-320 aircraft, 15 B777 aircraft, 24 787 aircraft, 23 737-800 and 11 ATRs and 4 B747 aircraft.
The airline has five subsidiaries and a JV company.
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