The Government of India Wednesday initiated its ambitious Air India disinvestment process, and unveiled its plans to sell up to 76 per cent stake in the debt-laden national carrier. The government plans to transfer the management control to private players.

The Ministry of Civil Aviation said the proposed strategic disinvestment would include profit-making Air India Express and AIATSL — an equal joint venture between Air India and Singapore-based SATS Ltd.

Expression of Interest (EoI) has been sought from various entities, including foreign airlines. Ernst & Young LLP India has been appointed as transaction adviser for the strategic disinvestment process.

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Here are key takeaways from the detailed preliminary information memorandum issued by the Ministry of Civil Aviation on Wednesday:

1. The bidder should have a minimum net worth of Rs 5,000 crore, and the requirement is subject to certain conditions depending on the class of entities
2. Bidding can be done as a single player or as part of a consortium.
3. Last date for submission of expression of interest is May 14, and intimation to the qualified interest bidders would be made on May 28
4. The government will retain 24% stake in the national carrier
5. The winning bidder will be required to stay invested for at least 3 years. During this period, the bidder would not be allowed to cede the management control
6. Each consortium member should have positive profit after tax in at least three of the immediately preceding 5 financial years from the EoI deadline
7. Bids by management and employees of companies participating directly or by forming a consortium would be considered subject to guidelines issued by the Department of Investment and Public Asset Management
8. The consortium can be along with a bank, venture capitalist, a financial institution or fund
9. Air India subsidiaries — Air India Engineering Services Ltd (AIESL), Air India Air Transport Services Ltd (AIATSL), Hotel Corporation of India (HCI), and Airline Allied Services Ltd (AASL) would be hived off through demerger or any other appropriate mechanisms
10. Central Public Sector Enterprises or Central Government Owned Cooperative Societies would not be allowed to bid unless a proposal is brought up for consideration of the Core Group of Secretaries on Disinvestment by the government.

Air India had a fleet of 115 aircraft as of December 2017 and serves around 39 international destinations. As on December 1, 2017, the airline had 11,214 permanent employees and 2,913 on contract, among others. The Cabinet Committee on Economic Affairs gave in-principle nod to strategic disinvestment of the airline, which has a debt burden of over Rs 50,000 crore, In June 2017.

(With Agencies)