<p><em>By Michael Sin and Arijit Ghosh</em><br /><span> </span><span> </span> </p>.<p>Bidders for Air India Ltd. will need to absorb $3.26 billion of its debt, as Prime Minister Narendra Modi’s administration tries once again to sell the national carrier.</p>.<p>The entire company will be sold but effective control needs to stay with Indian nationals, according to preliminary terms published Monday. Bids are invited by March 17 with Ernst & Young LLP India as transaction adviser.</p>.<p><strong>Also read — <a href="https://www.deccanherald.com/business/business-news/government-to-sell-100-stake-in-air-india-issues-bid-document-798468.html" target="_blank">Government to sell 100% stake in Air India; issues bid document</a></strong></p>.<p>Air India, which started in 1932 as a mail carrier before winning commercial popularity, saw its fortunes fade with the emergence of cutthroat low-cost competition. The state-run airline has been unprofitable for over a decade and is saddled with more than $8 billion in debt.</p>.<p>Indian regulations allow a foreign airline to buy as much as 49% of a local carrier, while overseas investors other than airlines can buy an entire carrier. The government didn’t find a single bidder when it tried to sell Air India in 2018.</p>
<p><em>By Michael Sin and Arijit Ghosh</em><br /><span> </span><span> </span> </p>.<p>Bidders for Air India Ltd. will need to absorb $3.26 billion of its debt, as Prime Minister Narendra Modi’s administration tries once again to sell the national carrier.</p>.<p>The entire company will be sold but effective control needs to stay with Indian nationals, according to preliminary terms published Monday. Bids are invited by March 17 with Ernst & Young LLP India as transaction adviser.</p>.<p><strong>Also read — <a href="https://www.deccanherald.com/business/business-news/government-to-sell-100-stake-in-air-india-issues-bid-document-798468.html" target="_blank">Government to sell 100% stake in Air India; issues bid document</a></strong></p>.<p>Air India, which started in 1932 as a mail carrier before winning commercial popularity, saw its fortunes fade with the emergence of cutthroat low-cost competition. The state-run airline has been unprofitable for over a decade and is saddled with more than $8 billion in debt.</p>.<p>Indian regulations allow a foreign airline to buy as much as 49% of a local carrier, while overseas investors other than airlines can buy an entire carrier. The government didn’t find a single bidder when it tried to sell Air India in 2018.</p>