Air India is not a distress sale: Government

The Indian government Tuesday made it clear that Air India divestment is not a distress sale and that the process will be concluded only at the right price. “The government retains the right to sell or not to sell AI if the bid price is found to be inadequate,” aviation secretary R N Choubey said, adding that the divestment move has generated a lot of “positive buzz”. “We are confident this move will be successful. But the transaction will happen only at the right price.” The government, which hopes AI has a new owner before the year-end, had earlier extended the last date for qualified interested bidders eligible to bid to June 15 from May 31. The last date for interested bidders to submit their expressions of interest has also been postponed to May end from May 14. The highest bidder would be known by end of August, Choubey said, and will have to meet substantial ownership and effective control norms and get security clearances before the stake sale takes place. <br/>