A serious countdown to the Air India sale has begun with the government sticking to September 15 as the deadline to receive Air India financial bids.
After months of to and fro in the midst of the pandemic and several changes to the share purchase agreement to accommodating the queries of the bidders, the government is hopeful of achieving the critical milestone of financial bids by this mid-month.
There is also hope that probably more than 2 bidders are in the race for the Maharaja although the government has not given any confirmation so far.
CNBCTV18 also learns that the reserve price for the asset sale is to be decided after the financial bids have been received, but not opened.
The government is committed to complete the Air India sale this fiscal.
Alongside these developments, the government is also working on the LIC listing. While the full valuation report for LIC is likely in November or December after which the size of the IPO will be decided, the government is examining a proposal to allow 20 percent FII investment in the insurance giant for the listing.
The proposal will be examined in consultation with the DPIIT, DFS and DIPAM.
The LIC Act does not permit foreign investment and officials explain, the Insurance Act with 74 percent FDI does not apply to the corporation.
It may be possible a cabinet nod will be sought to make changes in the foreign investment pool icy to enable FII/FPI holding in LIC.