Govt may clear decks for Air India divestment this week
The Union Cabinet may groom Air India this week either by a complete or a partial selloff.
The Union Cabinet is likely to clear stake sale in Air India this week after deciding between a complete and partial divestment of state-owned airline. Despite being granted a nine-year bailout package a few years ago, national carrier Air India has amassed debt of around Rs 45,000 crore.
The officials devised a Cabinet note containing NITI Aayog's proposal of a complete selloff and the Civil Aviation's bid in a partial sale of the airline's assets to reduce its debts.
Government think-tank NITI Aayog has suggested for a complete privatisation of the airline. Their bid is supported by presenting comebacks of earlier state-owned airlines — British Airways, Japan Airlines and Austrian Airlines — which became successful after privatisation.
The Civil Aviation Ministry's proposal of a partial selloff is chalked out on the basis of compensating for the Rs 33,000 crore debt owed on working capital loans. The airline will put up Rs 30,000 crore worth of assets up for sale.