After Tata Sons won the bid to acquire national carrier Air India, the acting Chairman and Managing Director (CMD) of the national carrier has issued an order for the management to control the expenses, till the divestment exercise is complete.
Aviation secretary Rajiv Bansal, who is currently the acting CMD of Air India, in order, asked the employees to control the daily expenses and carry out all revenue or capital expenses "only to the extent necessary for the continuity of business till the disinvestment exercise is complete".
"Air India disinvestment process is in its final stages. Letter of Intent has already been issued to the successful bidder. In view of this, it is important to note that all revenue or capital expenses be carried out only to the extent necessary for the continuity of business till the disinvestment exercise is complete, which is likely to happen within 10 weeks or so," the order said.
The order of whichhas a copy asked the management not to enter into any fresh contract without the approval of the Director Finance (DF) and the CMD as the divestment process is underway, which is in the final stages.
"No fresh contract to be entered into without the prior consent of DF/CMD. As far as possible, the validity of the same may not be beyond March 31, 2022. If the validity is beyond March 31, 2022, it should have a termination clause. All the functional directors, executive directors, Heads of the Departments to take note of the above and ensure strict compliance," the order copy said.
The above order was issued after Tata Sons won the final bid for acquiring national carrier Air India on October 8
According to Department of Investment and Public Asset Management secretary Tuhin Kanta Pandey, the transaction will be completed by December 2021.
( With inputs from ANI )
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