The government has decided to sell its entire 100 percent stake in Air India Ltd. under the proposed disinvestment process, Civil Aviation Minister Hardeep Singh Puri said on Thursday.
The national carrier, which has a debt burden of more than Rs 50,000 crore, has been making loss since its merger with Indian Airlines in 2007-08. As part of revival efforts, the government has decided on disinvestment.
"After formation of the new government, Air India Specific Alternative Mechanism has been reconstituted and the re-initiation of the strategic disinvestment of Air India has been approved,” Puri said.
"AISAM has approved the 100 percent sale of Government of India stake in Air India for the re-initiated strategic disinvestment of Air India," the civil aviation minister said in a written reply to the Lok Sabha.
Air India's net loss in 2018-19 is provisionally estimated at Rs 8,556.35 crore.
The minister said various measures, including handing over of Jet Airways (India) Ltd.'s aircraft to other airlines, have been taken to improve the aviation sector. Jet Airways was grounded in April 2019 for want of funds.
Also Read: Debt-Laden Air India Will Have to Shut Down If Sale Offer Flops
"Airports Authority of India has embarked upon a capital investment of over Rs 25,000 crore in next five years for development/upgradation/modernisation of various airports and air navigation infrastructure," Puri said.
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