The divestment plans of Air India Engineering Services Ltd (AIESL) is currently under process and will be completed soon. Speaking at a recent media event in India, the Aviation Secretary, Rajiv Bansal said that AIESL has a healthy balance sheet and once the divestment process is over, Indian aviation industry will benefit from it.
The first step of roadshows of AIESL divestment is done and the second step of approval from the Group of Ministers is also completed, the process is awaiting the approval from government's Alternative Mechanism (AM)
This includes the approval of recommended price band/ floor price, method of disinvestment, price discount for retail investors and employees, etc. The Alternative Mechanism (AM) on strategic disinvestment consists of the Finance Minister, Minister for Road Transport and Highways and minister representing respective administrative department, to decide on the matters relating to terms and conditions of the sale.
The AM will also decide on the proposals of the Core Group of Secretaries on Disinvestment with regard to the timing, price, the terms and conditions of sale and any other related issue to the transaction
The government will invite EOIs (expression of interest) after approval from the alternative mechanism.
While Air India was sold to Tata Sons in January 2022 in a divestment process, AIESL is still owned by the government.