Govt to sell 76% stake in Air India |
The government of India has unveiled plans to sell up to 76 per cent stake in the national carrier, Air India, and transfer the management control to private players. The Union Cabinet, in June last year 2017, had granted an in-principle approval for the strategic sale of Air India and its subsidiaries and this process is being monitored by Air India-Specific Alternative Mechanism headed by Finance Minister Arun Jaitley. One of the stated objectives of this group of ministers and officials was “treatment of unsustainable debt of Air India”. The Civil Aviation Ministry has come out with a detailed preliminary information memorandum on the stake sale and said that the proposed disinvestment would include profit-making Air India Express and joint venture AIATSL. The latter is an equal joint venture between the national carrier and Singapore-based SATS Ltd. The government would retain 26 per cent stake in Air India and the winning bidder would be required to stay invested in the airline for at least three years. Expression of Interest (EoI) has been sought from various entities, including foreign airlines to start off the disinvestment exercise. The last date for submission of EoI is May 14 and intimation to the qualified interest bidders would be made on May 28.
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