New Delhi, Oct 16 : Air India Chairman and Managing Director (CMD) Rajiv Bansal has asked airline directors and department heads to restrict all expenses to the business continuity in view of the disinvestment process which is in final stages.
Bansal is now Civil Aviation Secretary but continues the post of Air India CMD as additional charge. His directive to the senior management is in his capacity as airline chief.In a letter dated October 14, Bansal has also asked the senior functionaries to not enter into any fresh contract without prior approval of either Chairman or Director (Finance).
“No fresh contract be entered into without the prior consent of DF/CMD. As far as possible, the validity of the same may not be beyond 31st March 2022. lf the validity is beyond 31st March 2022, it should have a termination clause,” Bansal wrote.
UNI has reviewed the letter directing functional directors, executive directors and department heads for strict compliance. Bansal noted that disinvestment exercise is likely to complete within 10 weeks or so as letter of intent (LoI) has already been issued to the successful bidder.
“ln view of this, it is important to note that all revenue or capital expenses be carried out only to the extent necessary for the continuity of business till the disinvestment exercise is complete, which is likely to happen within 10 weeks or so,” Bansal said.
In a long-running bid process to sell Air India lock, stock and barrel, the government last week announced Tata group subsidiary Talace Pvt Ltd as winning bidder which offered to pay Rs 2,700 crore cash to the government and retaining the debt of Rs 15,300 crore.
The enterprise value of Rs 18,000 crore quoted by Talace Pvt Ltd was much above the reserve price of Rs 12,906 crore fixed by the government to sell the national carrier along with its subsidiary Air India Express and 50 per cent stake in ground-handling joint venture AISATS. The government has set December 2021 as deadline to complete the sale of Air India.
