For Quick Alerts
For Daily Alerts

Govt To Go Ahead With Air India Disinvestment Plans


In a statement on Thursday, the Ministry of Civil Aviation clarified that it will go ahead with the disinvestment process of Air India on recommendations of the Air India Specific Alternative Mechanism (AISAM).

Govt To Go Ahead With Air India Disinvestment Plans

"In an AISAM Meeting held on 28th March 2018, which is last year, it was decided that due to issues like volatile crude oil prices & adverse fluctuations in exchange rates, the atmosphere was not conducive for the disinvestment. But this was last year," the statement said.

"However, continued support from the govt had resulted in improvement of financial & operational performance of Air India. As per the recommendations of AISAM, the govt will now go ahead with the process of disinvestment of the company," it added.

AISAM is a group of ministers constituted by the Cabinet Committee on Economic Affairs at its 28 June meeting after the CCEA approved the consideration for strategic disinvestment of Air India & its five subsidiaries.

The group will be reconstituted to replace Arun Jaitley and Suresh Prabhu, who are no longer ministers in Narendra Modi's cabinet in his second term as the Prime Minister. They will be replaced by Finance Minister Nirmala Sitharaman and Civil Aviation Minister Hardeep Singh Puri. Transport Minister Nitin Gadkari is likely to continue in the panel, PTI reported.

Expressions of Interest (EOIs) for a strategic disinvestment of Air India were invited by the Central Government on 28 March 2018. However, in a written response to the Lok Sabha, Puri said that "no EOI/bid was received till the last date of receipt of bids i.e May 31, 2018."

He further said that the state-run airline had a total debt of Rs 58,351 crore as on 31 March 2019.

Read more about: air india disinvestment
Story first published: Friday, June 28, 2019, 10:41 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more