TIL Desk/Business/New Delhi/ The International Monetary Fund on Monday said the sale of national carrier Air India will constitute an “important milestone” in India’s privatisation efforts. Tata group has emerged as the winning bidder for the loss-making Air India, and on October 11, a letter of intent (LoI) was issued to the group.
“We welcome the recent agreement on the sale of Air India, which constitutes an important milestone,” Alfred Schipke, Director of IMF-STI Regional Training Institute and a former IMF India Mission Chief, told in an interview.
Earlier this month, the government accepted an offer by Talace Pvt Ltd, a unit of Tata group, to pay Rs 2,700 crore cash and takeover Rs 15,300 crore of Air India’s debt.
After Tatas accept the LoI, the share purchase agreement (SPA) for the sale will be signed. Along with Air India, Tatas will acquire low-cost carrier Air India Express and Air India’s 50 per cent stake in equal joint venture AISATS.
“In general, to maximise the benefits from privatisation, the international experience highlights the importance of medium-term privatisation plans, solid regulatory frameworks, competitive markets and the buy-in of key stakeholders,” Schipke said as the IMF released its annual report on India.
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