Air India has projected a net loss of over Rs. 3,500 crore for 2017-18, which was less than 2016-17, aid the government in Rajya Sabha, reported PTI.
In it written reply, Civil Aviation Minister Ashok Gajapathi Raju mentioned the budget estimates for Air India which projected net loss of Rs. 3,579 crore for 2017-18 (provisional) as against Rs 3,643 crore for 2016-17 (provisional).
During Question Hour, he said that the Cabinet Committee on Economic Affairs (CCEA) has only given an "in principle approval" for strategic disinvestment of Air India and a committee of specific alternative mechanism has been constituted, which has sought suggestions in this regard. Replying to supplementaries on the proposed sale of state -owned Air India, Raju said the specific alternative mechanism will guide the process of strategic disinvestment from time to time.
The committee headed by Finance Minister and constituting Commerce Minister, Transport Minister and Railway Minister will take decision on this regard. Suggestions from the Rajya Sabha were welcomed.
The CCEA had given in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries in its meeting held on June 28, 2017. Air India has been incurring continuous losses and has huge accumulated losses.
The written reply mentioned an operating profit of Rs. 105 crore during 2015-16 and Rs. 215 crore (provisional) during 2016-17 and as per budget estimates for 2017-18 (provisional). The airline is projected to make an operating profit of Rs. 531 crore.