Air India on sale after Union Cabinet approves disinvestment

Air India, India-bound flights, US, rescheduled, inclement weather, Flight, News Mobile, Mobile News, India

The Union Cabinet on Wednesday gave an in-principle approval for disinvestment of Air India.

Finance Minister Arun Jaitley, while addressing a press conference, said that on the request of the Civil Aviation Ministry a group under his vigil will be constituted to decide on the modalities of the matter.

ALSO READ: Tata, govt hold talks for stake in Air India

“There was a proposal of civil aviation ministry of disinvestment of Air India, this has been given theoretical approval or an in-principal approval,” said Jaitley.

“In its proposal, the civil aviation ministry had urged to constitute a group under the finance minister which can decide on the concerning modalities of the same, the cabinet has accepted that. How much of it will be disinvested? Or the issues related to its debts, hotels will be later on decided by the constituted group,” he added.

This step comes in the view of Ministry of civil aviation plying ways to revive Air India, which is surviving on Rs 30,000 crore bailout package extended by the previous UPA regime.

ALSO REASON: SAIC Motors announces set up of its first manufacturing facility in India

Air India constitutes of the largest fleet of 140 planes in India.

According to reports, the cabinet chose between two options suggested in a 30-page note prepared by the Department of Investment and Public Asset Management (DIPAM) after discussions in a Committee of Secretaries, headed by the cabinet secretary.


Please enter your comment!
Please enter your name here