Air India divestment: Govt departments to approach PMO for consultation

Various government departments, having stake in the debt-ridden Air India, are likely to approach the Prime Minister’s Office for a fresh round of consultations on the airline’s divestment, sources said.

The Aviation Ministry is concerned about sale of the overseas properties of Air India, reports CNBC-TV18’s Timsy Jaipuria.

Besides asset sale, the government is also concerned about ruckus that Opposition might create on Air India sale talk.

Sources, privy to the developments, said that finance ministry and aviation ministry are likely to make a presentation to the Parliamentary Panel.

A Parliamentary panel has also sought details from the government on its decision of giving in-principal approval to divest its stake in Air India. Modalities are still being worked out for the proposed divestment to revive the debt-laden national carrier.

Officials from the ministries of finance and civil aviation as well as from Air India are expected to provide views this week to the Parliamentary Standing Committee on Transport, Tourism and Culture.

Air India, which has a debt burden of more than Rs 52,000 crore, is staying afloat on taxpayers' money. The previous UPA government had extended bailout package worth little over Rs 30,000 crore to the national carrier for a ten-year period starting from 2012.

The national carrier's main grouping -- the Air Corporations Employees' Union (ACEU) -- is opposed to the disinvestment. The ACEU represents Air India's non-technical staff and has nearly 8,000 of the airline's total 21,137 employees as members.

On July 12, the panel is also expected to "consider and adopt the draft reports on the Merchant Shipping Bill, 2016 and the Major Port Authorities Bill, 2016".