Tuesday, August 20, 2019

Gov't ready to sell a 95% stake in Air India - report

The Indian government has agreed in principle to increase the stake in Air India available for privatisation to 95%, The Business Standard has reported.

A committee led by Cabinet Secretary P. K. Sinha will present its report paving the way for a new privatisation attempt by the end of August 2019. Subject to approval by the appropriate ministerial commissions, the government will seek to almost fully divest from Air India.

The report foresees a call for Expressions of Interest in early October 2019.

The government plans to retain a 5% stake to maintain Air India's state-funded pension plans.

In 2018, the Indian government unsuccessfully tried to sell a 76% stake in Air India. No bidders emerged at that time.

Air India's current debt stands at around INR583.5 billion rupees (USD8.2 billion). According to provisional results, it lost INR73.6 billion rupees (USD1 billion) in the fiscal year ended on March 31, 2019.
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