Question : Disinvestment of Air India

(a) whether the Government has finally decided to go for disinvestment of Air India;

(b) if so, the details thereof including the steps taken and the time by which this process would be completed;

(c) whether employees of the Air India would be affected with this disinvestment and if so, the details thereof;

(d) whether the Government has sold out six airports to the private players under PPP model; and

(e) if so, the details thereof including the details of PPP model and the details of amount of revenue that would be generated to the Government?

The Minister of State (IC) in the Ministry of CIVIL AVIATION
(Shri Hardeep Singh Puri)

(a) and (b): The Government is committed to the disinvestment of Air India and has issued a Preliminary Information Memorandum (PIM) inviting Expression of Interest for sale of 100% equity share capital of Air India Limited (AIL) including AIL''s 100% shareholding in the Air India Express Limited (AIXL) and 50% shareholding in Air India SATS Airport Services Private Limited (AISATS) on 27.01.2020. Corrigendums have been issued wherein time period upto 06.03.2020 has been given for submission of written queries on PIM and Share Purchase Agreement (SPA). Last date for release of response to queries on PIM (and SPA, if so provided by the GOI at its discretion) is 16.03.2020. The process has been divided into two stages. In the stage I, Expression of Interest will be submitted by Interested Bidders and they will be shortlisted based on Eligibility criteria and other terms mentioned in the Preliminary Information Memorandum (PIM). In the stage-II, shortlisted Interested Bidders will be provided with an Request for Proposal (RFP) and thereafter there will be a transparent bidding process.;
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(c): The interest of the employees of Air India will be safeguarded in accordance with the guidelines of Department of Investment and Public Asset Management, Ministry of Finance on strategic disinvestment of CPSEs and same will be reflected in the Share Purchase Agreement to be signed with new owner.
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(d) and (e): Union Cabinet in its meeting held on 08.11.2018 had accorded "In-principle" approval for leasing out six airports of Airports Authority of India (AAI) namely Ahmedabad, Jaipur, Lucknow, Guwahati, Mangaluru and Thiruvananthapuram under Public Private Partnership (PPP). AAI has issued Letter of Award (LoA) on 15.7.2019 to M/s Adani Enterprises Limited (M/s AEL) in respect of Lucknow, Ahmedabad and Mangaluru airports. The Concession Agreement between AAI and M/s AEL for Operation, Management and Development of these three airports has been signed on 14.02.2020. Award of the remaining 3 airports i.e. Jaipur, Guwahati and Thiruvananthapuram is held up due to pending litigations / other issues. The bidding parameter for these six airports was Per Passenger Fee (PPF) payable to AAI by the Concessionaire which is indicated as under:
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Airports PPF payable to AAI (In Rs.)
Ahmedabad 177
Jaipur 174
Lucknow 171
Thiruvananthapuram 168
Mangaluru 115
Guwahati 160