Govt Announces 100% Privatisation Of Air India, Says Option Was This Or Closing Down

Mumbai: Union Minister Hardeep Singh Puri announced that Air India will be 100% disinvested. “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 Govt is determined and there is no hesitation,” Civil Aviation Minister Hardeep Singh Puri said.

“We’ve decided that Air India will be 100% disinvested. The choice isn’t b/w disinvestment & non-disinvestment, it’s b/w disinvestment & closing down. Air India is a first-rate asset but has an accumulated debt of Rs 60,000 Cr. We need to draw the slate clean,” he added.

https://twitter.com/ANI/status/1375728129080107008?s=20

In last month’s budget, the government allocated ₹ 2,268 crores for a special purpose vehicle set up as part of the financial restructuring of Air India. Finance Minister Nirmala Sitharaman had said that the disinvestment of Air India and Pawan Hans would be completed in the next financial year.

In 2018, the government called for a 76 per cent stake in the airline for Air India and Expression of Interest (EoI) to discontinue management control, but could not find a single bidder. The government currently holds 100 per cent equity in Air India.

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