Air India final bidders may be named only by Sept | Economic Times

The government's plan to announce the final bidders for Air India has been postponed to around September or October 2021 as its priority has shifted to deal with the Covid 19 pandemic. Top officials close to the development said this will also help Tata group focus on dealing with Covid, as the second wave has hugely impacted health and lives. It will be Tata Sons which will participate in the final bidding process, officials close to the development said.“It is being seen as not the immediate focus point for now. Tatas will follow any directives that come in this regard,” a top Tata group official close to the development said.Another official aware of the government's view said that the divestment process has been pushed to September or October 2021, around which time the financial bids should come in. This would mean that the finalisation of the new owners of AI may not happen by the end of the current fiscal. The name of winning bidder may be announced but the handover of the airline may take time. The government was targeting to complete the privatization by the end of this fiscal.The divestment process is still on as of now. A virtual data room has been created and data has been uploaded on that website and queries are being raised every now and then and these are being responded to. “It’s not a halt, for now there is no movement on divestment - but in principle the process is on,” an official said.Tata Sons did not comment. The move also will give the Tata group a breather in terms of arranging the sizeable quantum of funds that will be required. The group is currently involved in Covid- relief related efforts and the financial commitments towards this is considerable, officials said.A senior official close to the group said a lot of initiatives and mindspace is on Covid focused efforts. “Funding or implementing plans towards Covid relief work has been the larger focus from a group level. So divestment issues could take a back seat for now. There are other top priorities for all of us, corporates and the government. The divestment process will happen in due course of time," the person said.All those quoted in the story spoke on condition of anonymity.Tata group officials said substantial due-dilligance, including examination of physical assets, is needed before completing a transaction of this magnitude.“These are finer points that will be ironed out at the right time. Everyone have done what they needed to as part of the divestment process, sorting out finer details will happen when other priorities are dealt with,” said a senior Tata group official.Vihang Virkar, aviation law expert and Partner at PDS Legal says given the magnitude of the second wave of the pandemic, several companies have been delaying their investment decisions and hence it is not surprising that the Air India divestment is likely to be postponed.