Air India privatisation: Cabinet approves disinvestment of national carrier

The top contenders for the ownership of debt-ridden airlines are Tata who were reportedly eyeing for the sale.

Updated: June 28, 2017 8:04 PM IST

By Ravi Kaushal

Air India privatisation: Cabinet approves disinvestment of national carrier

New Delhi, June 28: The Union Cabinet, in its meeting on Wednesday at Prime Minister’s house, gave in-principle approval for disinvestment of national carrier Air India, which is reportedly under the debt of more than Rs 40,000 crores. The demand for disinvestment of the national carrier was doing rounds in corridors of power. Union Finance Minister Arun Jaitley said the government is looking forward for stake sale in India. However, the whole process of stake sales has not been announced yet.

“In-principle approval for Air India divestment has been given,” the minister said at a press briefing after the Union cabinet met here.

“The Civil Aviation Ministry’s proposal for formation of a group under the chairmanship of the Finance Minister to decide the modalities of divestment process has also been accepted.”

The top contenders for the ownership of debt-ridden airlines are Tata who were reportedly eyeing the stake in Air India. Staying afloat on taxpayers’ money, Air India has been in the red for long and various proposals, including government think-tank Niti Aayog’s suggestion for complete privatisation, have been made.

Air India traces its roots to Tata Airlines, which was formed back in 1932. Set up by Tatas, the carrier was made a public company and was rechristened as Air India. Later, it was nationalised. Earlier also, the Tatas had tried to acquire stake in Air India.

Minister of State for Civil Aviation Jayant Sinha said inter-ministerial consultations on the future course of action for Air India have been completed and the Cabinet would decide on how best to move forward.

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