NEW DELHI: Taking forward the process for Air India disinvestment, the government on Thursday invited bids to appoint two financial advisers and one legal adviser for the privatisation of national carrier Air India and its subsidiaries.

The applications for the bid seek advisers for the "strategic disinvestment of Air India and its subsidiaries/ joint venture," two similarly-worded public notices said.

Elaborating on the government's requirement one of the notices listed that it "requires the services of reputed law firms with experience and expertise in mergers and acquisitions/ takeovers/strategic disinvestment/ private equity transaction to act as legal adviser and assist government in the process".

"The Government of India has in-principle decided to consider the disinvestment of the AI Group as a whole or its constituents fully or part thereof through strategic sale with transfer of management control," the notices further said.

The notices for Expression of Interest have been issued by the Department of Investment and Public Asset Management ( DIPAM ). The applications have to be submitted by October 12.

Air India is also planning to take short term loans worth up to Rs 3,250 crore to meet "urgent working capital requirements". A senior official said the airline is already facing "cash deficit" and the loans will help in meeting immediate capital requirements.

"The Government of India guarantee, which is expected shortly, will be valid for a period of one year or till the date of disinvestment," the document said.

Banks have been asked to submit their financial bids by September 19, indicating the amount of government-guaranteed short-term loans they are willing to offer.

The government gave the green light to sell Air India, which has struggled under losses and its debts, in June, and officials have said they want the process to offload all or parts of the airline by early 2018.

Under a turnaround plan approved by the previous UPA regime, Air India is to receive up to Rs 30,231 crore from the government subject to meeting certain performance thresholds. The ten-year bailout package began from 2012.

So far, the embattled carrier has received around Rs 26,000 crore under the package.

The Cabinet Committee on Economic Affairs (CCEA) gave its in-principle nod for the strategic disinvestment of the airline -- which has a debt burden of more than Rs 50,000 crore -- in June this year.

Subsequently, an Air India-specific alternative mechanism was set up to guide the process.

The ministerial group is looking into treatment of Air India's unsustainable debt, hiving off of certain assets to a shell company, demerger and strategic disinvestment of three profit-making subsidiaries, among other aspects.

(With inputs from agencies)

