FM for strategic AI disinvestment |
India`s Finance minister Arun Jaitley has said that the government is open to the idea of inducting a strategic partner in Air India and the civil aviation ministry was exploring all possible options for the ailing state-run airline. Today they have a market share of 14% and a debt of Rs 50,000 crore. So, money does not go into private sector airlines such as Indigo, Spicejet, Go Air, Jet Airways. When asked about the government`s strategy to deal Air India, the finance minister said that if a good management comes forward, government will consider disinvestment. Jaitley explained that of Rs 50,000 crore debt, nearly Rs 25,000 crore is the value of aircraft. The airline also has some other assets. The civil aviation ministry is exploring all options. If 86% of the flying can be handled by the private sector they can handle 100% also, Jaitley said. The Modi government had promised to push ahead with strategic disinvestment, which involves ceding management control, when it swept to power in May 2014 but the process has made limited progress. The Vajpayee government had made efforts to sell a stake in Air India and the then disinvestment minister Arun Shourie had promised to push ahead with a strategic sale even if one bidder was in the fray. But the plans fell through and Air India continued as a state-run entity.
|
|
|
|