Government to sell 100 pct stake in Air India: Hardeep Singh Puri in Lok Sabha
Union Minister Hardeep Singh Puri on Thursday said that the government has decided to sell its entire 100 per cent stake in Air India under the proposed disinvestment process.
Union Minister Hardeep Singh Puri on Thursday said that the government has decided to sell its entire 100 per cent stake in Air India under the proposed disinvestment process. In a written reply in Lok Sabha, Puri said that a Air India Specific Alternative Mechanism (AISAM) has been reconstituted after the formation of the new government. He added that following this the strategic disinvestment of Air India has been approved.
The national carrier, which has a debt burden of more than Rs 50,000 crore, has been making loss for long and as part of revival efforts, the government has decided on disinvestment.
"After formation of the new government, Air India Specific Alternative Mechanism (AISAM) has been reconstituted and the re-initiation of the strategic disinvestment of Air India has been approved," Puri was quoted as saying by PTI. The Union Minister further said that AISAM has approved the 100 per cent sale of Government of India stake in Air India for the re-initiated strategic disinvestment of Air India.
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Air India's net loss in 2018-19 is provisionally estimated to be Rs 8,556.35 crore. The minister said various measures, including enabling swift transition of Jet Airways aircraft to other airlines, have been taken to improve the aviation sector. Full service carrier Jet Airways shuttered operations in April due to cash crunch.
"Airports Authority of India (AAI) has embarked upon a capital investment of over Rs 25,000 crore in next five years for development/ upgradation/ modernisation of various airports and air navigation infrastructure," Puri said.
Last month, Puri had said that the first meeting of the Group of Ministers (GoM) has met and take some decisions about Air India. "Currently, the investor outreach programme is on. Air India CMD, Aviation Secretary and other concerned officials are meeting potential bidders," he had said.