MUMBAI: The Tata Group and Spicejet, the country’s largest cargo operator, are the only two contenders remaining in the fray for buying cash-strapped Air India, according to news reports which also say that a consortium of Air India employees, backed by NRI businessman Laxmi Prasad and his New York-based Interups Fund, has been disqualified. 

According to an IANS report, the bids of Air India employees’ consortium have been rejected after the evaluation of expressions of interest (EoIs), where multiple bids were received. The advisers were in touch with the interested bidders regarding several queries. The qualified bidders will be intimated only after the government is satisfied with the bidders’ responses.

In a letter to Air India employees on March 8, the advisers had said, “The EoI and the supporting documents submitted by you have been duly evaluated and have been found to not fulfil the eligibility requirements set out in the Preliminary Information Memorandum (as amended) issued in respect of the strategic disinvestment of Air India and is liable for disqualification.”

Media reports further indicated that Essar, Pavan Ruia of Dunlop and Falcon Tyres had also put in bids for Air India; however, their bids have been rejected.

The divestment process of the national carrier has been divided into two stages. In stage one, the interested bidders submit EoIs, and they are shortlisted based on the eligibility criteria and other terms mentioned in the PIM. In stage two, the shortlisted interested bidders will be provided with a request for proposal (RFP), and thereafter, there will be a transparent bidding process.