Low-cost airline carrier Indigo is among the firsts to submit expression of interest in buying Air India, which is facing huge losses.
Aviation minister Jayant Sinha said that IndiGo's was the first "unsolicited" formal offer for AI.
"A number of domestic and international players have informally approached us to show interest in AI. IndiGo is the first one to do so formally," Sinha said.
However, no official news has come from the side of Indigo airlines.
Moving ahead on the proposal for privatisation, the Union cabinet on Wednesday gave its in-principle approval for divestment of Air India, whose debt has mounted to Rs 50,000 crore besides huge losses.
"In-principle approval for Air India divestment has been given," Finance Minister Arun Jaitley told a press briefing after the cabinet meeting chaired by Prime Minister Narendra Modi.
"The Civil Aviation Ministry's proposal for formation of a group under the chairmanship of the Finance Minister to decide the modalities of divestment process has also been accepted," he said.All airline carriers interested in buying the Air India will have to make an official bid and follow a formal process.