New Delhi: The Indian government's offer to sell stakes in Air India has failed to draw a single bid so far, underlining the challenge that it faces in fixing the debt-laden state carrier, as well as meeting a broader target of stake sales in government-held firms.
Prime Minister Narendra Modi's government announced a plan in March to divest a 76 per cent stake in Air India and offload about US$5.1 billion of its debt. This month, it eased some terms and extended the period to make bids but as the revised deadline loomed, there were still no takers for the airline, which flies some lucrative routes but also has one of the industry's highest employees-per-aircraft ratios.
India's civil aviation secretary RN Choubey said on Wednesday that the government was unlikely to further extend the May 31 deadline, and that it expected bids to come in at the last minute. Selling the state carrier is key to Mr Modi's plans to divest assets and help keep the fiscal deficit at 3.3 per cent of gross domestic product (GDP), a goal already under pressure from giveaways to farmers and other welfare benefits ahead of a national election in 2019.
01/06/18 Business Times
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Prime Minister Narendra Modi's government announced a plan in March to divest a 76 per cent stake in Air India and offload about US$5.1 billion of its debt. This month, it eased some terms and extended the period to make bids but as the revised deadline loomed, there were still no takers for the airline, which flies some lucrative routes but also has one of the industry's highest employees-per-aircraft ratios.
India's civil aviation secretary RN Choubey said on Wednesday that the government was unlikely to further extend the May 31 deadline, and that it expected bids to come in at the last minute. Selling the state carrier is key to Mr Modi's plans to divest assets and help keep the fiscal deficit at 3.3 per cent of gross domestic product (GDP), a goal already under pressure from giveaways to farmers and other welfare benefits ahead of a national election in 2019.
01/06/18 Business Times
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