Union Minister of Civil Aviation Hardeep Singh Puri said in Lok Sabha that the government has decided to sell its entire 100% stake in Air India under the proposed disinvestment process, reported PTI.
Air India has a debt of over Rs 50,000 crores and is continously making losses. Hence, with the intention of reviving the company, the disinvestment was proposed by the government.
“After formation of the new government, Air India Specific Alternative Mechanism (AISAM) has been reconstituted and the re-initiation of the strategic disinvestment of Air India has been approved.
“AISAM has approved the 100 per cent sale of Government of India stake in Air India for the re-initiated strategic disinvestment of Air India,” the Minister of State for Civil Aviation said in a written reply to the Lok Sabha.
Air India’s net loss in 2018-19 is provisionally estimated to be Rs 8,556.35 crore.
The minister said various measures, including enabling swift transition of Jet Airways aircraft to other airlines, have been taken to improve the aviation sector.
Full service carrier Jet Airways shuttered operations in April due to cash crunch.
“Airports Authority of India (AAI) has embarked upon a capital investment of over Rs 25,000 crore in next five years for development/ upgradation/ modernisation of various airports and air navigation infrastructure,” Puri said.-PTI news
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