Air India shall be “100 per cent disinvested” and it “must find a new home”, Civil Aviation Minister Hardeep Puri stated immediately on the disinvestment means of the debt-ridden nationwide service. He stated potential consumers have been given 64 days to return with their bids.
“We’ve decided that Air India will be 100 per cent disinvested. The choice isn’t between disinvestment and non-disinvestment. It’s between disinvestment and closing down. Air India is a first-rate asset but has an accumulated debt of Rs. 60,000 crore. We need to draw the slate clean,” Mr Puri advised information company ANI.
“It must find a new home,” he stated.
Multiple entities had final month expressed curiosity in bidding for the federal government’s stake within the airline.
“In the last meeting, on Monday, it was decided that the shortlisted bidders (for Air India disinvestment) be informed that the bids have to come in within 64 days…This time the government is determined and there is no hesitation,” the Unio Minister stated.
In the finances final month, the government allocated Rs. 2,268 crore for a particular function automobile arrange as a part of monetary restructuring of Air India. Finance Minister Nirmala Sitharaman had stated the disinvestment of Air India and Pawan Hans can be accomplished within the subsequent monetary yr.
In 2018, the federal government had floated the Expression of Interest (EoI) for Air India to dump a 76 per cent stake and administration management within the airline but it surely didn’t get a single bidder. The authorities at the moment owns 100 per cent fairness of Air India.
(With inputs from ANI and PTI)