Government announces 100% privatisation of Air India, says option was this or closing down.

Government announces 100% privatisation of Air India, says option was this or closing down.
Image source: Deccan Herald
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Keypoints:

  • Air India will be completely disinvested,choice is only between disinvestment or closing down the airline company, said Union Minister Hardeep Singh Puri.
  • Financial bids will be invited in the coming days.
  • Disinvestment is likely to be completed by May or June.

On Saturday, Union Minister Hardeep Singh Puri announced that Air India will be completely disinvested. He also added that choice is only between disinvestment or closing down Air India.

“We’ve decided that Air India will be 100% disinvested. Choice isn’t between disinvestment and non-disinvestment, it’s between disinvestment and closing down. Air India is a first-rate asset but has an accumulated debt of Rs 60,000 Crore. We need to draw the slate clean” Hardeep Singh Puri said.

On Friday, the Union Minister said that the government is looking forward at a new timeline for Air India disinvestment. He also added that financial bids will be invited in the coming days.

“In the last meeting, on Monday, it was decided that the shortlisted bidders (for Air India disinvestment) be informed that the bids have to come in within 64 days…This time the Govt is determined and there is no hesitation,” he said.

On Friday, Puri said that,”…There is no choice, we either privatise or we close the airline. We run a loss of Rs 20 crore every day despite Air India making money now. Because the mismanagement has resulted in a cumulative debt of Rs 60,000 crore.”

“I don’t have the capacity to keep going to Nirmala ji and say please give me some money,” he said in an apparent reference to seeking funds to run Air India from the finance minister. Adding to this, he also noted that earlier there were unsuccessful attempts of privatisation of Air India, because the attempts were half hearted.

“We’ve decided that Air India will be 100% disinvested. Choice isn’t b/w disinvestment & non-disinvestment, it’s b/w disinvestment & closing down. Air India is a first-rate asset but has an accumulated debt of Rs 60,000 Cr. We need to draw the slate clean. (sic),” read the tweet.