One fears there will be no serious buyer for Air India. Asking the successful bidder to absorb $ 5 billion of debt is a complete deal breaker. The 26% retention of shares by the government is meaningless. This is not Hindustan Zinc, where a company valued at 400 crores at the time of disinvestment is now worth 2 trillion and the government’s stake is valued at 55,000 crores. 2. Since this is the last year of the present term, the government will simply go through the motions. Either greatly simplified terms of disposal may fetch a buyer or the airline will have to be shut down, with its assets being sold piecemeal. That will be a pity, since the brand will cease to exist. 3. Willy nilly, the debt will be taken over by the government, which will also give its employees a fair severance package. Not being able to complete a single disinvestment will show up on the Report Card.
One fears there will be no serious buyer for Air India. Asking the successful bidder to absorb $ 5 billion of debt is a complete deal breaker. The 26% retention of shares by the government is meaningless. This is not Hindustan Zinc, where a company valued at 400 crores at the time of disinvestment is now worth 2 trillion and the government’s stake is valued at 55,000 crores. 2. Since this is the last year of the present term, the government will simply go through the motions. Either greatly simplified terms of disposal may fetch a buyer or the airline will have to be shut down, with its assets being sold piecemeal. That will be a pity, since the brand will cease to exist. 3. Willy nilly, the debt will be taken over by the government, which will also give its employees a fair severance package. Not being able to complete a single disinvestment will show up on the Report Card.