Thursday, June 01, 2017

Cabinet to decide on privatisation of Air India

New Delhi: The Cabinet will soon take a call on NITI Aayog’s suggestion to privatise Air India, where the government is pumping in money to keep it afloat.

Civil Aviation Minister Ashok Gajapathi Raju had on Tuesday said all options, including disinvestment, is before the government to take the national carrier to a new high. A source said the Cabinet would soon take a call on the issue.

Finance Minister Arun Jaitley had said that the government is exploring all options on the national carrier, which has a debt of around Rs 50,000 crore.

The talks come against the backdrop of arguments that there is no point in the government pumping in money into Air India as part of its Turn Around Plan and Financial Restructuring Plan (TAP-FRP). Under the TAP-FRP approved in April 2012, the government had committed to infusing equity of Rs 42,182 crore from 2011-12 to 2031-32.

The Centre of Indian Trade Union (CITU) described the government’s proposal as an exercise with a “dubious intent to fritter away” a national asset to benefit private airlines.
01/06/17 Deccan Herald