AIESL divestment to be completed soon: Rajiv Bansal Aviation Secretary

File image of IAS officer Rajiv Bansal (Photo: Twitter/DDNews)

Rajiv Bansal, Secretary, Ministry of Civil Aviation said on March 21 that divestment plans of Air India Engineering Services Ltd (AIESL) are under process  and would be completed soon.

Speaking at CAPA India Aviation Summit, Bansal said AIESL, which provides engineering services to Air India, has a healthy balance sheet and once the divestment process is over, Indian aviation industry will benefit from it.

The Aviation Secretary said the first step of roadshows of AIESL divestment is done and the second step of approval from the Group of Ministers is also completed. The last step of approval from the government's Alternative Mechanism is pending, he said.

Approval by Alternative Mechanism involves the approval of recommended price band/ floor price, method of disinvestment, price discount for retail investors and employees, etc. The Alternative Mechanism (AM) on strategic disinvestment consists of the Finance Minister, Minister for Road Transport and Highways and minister representing respective administrative department, to decide on the matters relating to terms and conditions of the sale.

The AM will also decide on the proposals of the Core Group of Secretaries on Disinvestment with regard to the timing, price, the terms and conditions of sale and any other related issue to the transaction.

Bansal said government will invite EOIs (expression of interest) after approval from the alternative mechanism.

While Air India was sold to Tata Sons in January 2022 in a divestment process, AIESL is still owned by the government.

Bansal said government is also working towards the privatisation of smaller airports in India. “We are yet to take a decision on the privatisation on 11 out of the 25 airports identified for privatization,” he added.

Delhi Airport

Bansal said that the fourth runway at the Delhi Airport would be operational from August 2023. He added that Terminal 1 extension at Delhi Airport is also expected to be completed by October 2023.

Once the extension is done, the combined capacity will go up to 100 million passengers, said Bansal.

Bansal also addressed the issue of crowding at airports during peak summer and said the government has taken precaution to avoid crowding this summer.