Government Mulls Injecting Fresh Capital Into Air India

Hyderabad: As state carrier Air India found no takers in government's bid to sell its 76 percent stake, the Centre is now contemplating infusing fresh capital into it, a top official said on Thursday. Civil Aviation Secretary R. N. Choubey said a decision on infusing fresh capital would be taken very soon.

He also clarified that the government has yet not given up on the disinvestment plan, however, the same would be taken up once the conditions become favourable, he said.

While speaking to reporters on the sidelines of an event, Mr Choubey hinted that while putting in fresh capital, a timeline would be set for Air India to deliver.

"No support is given without some kind of timeline being determined. Whenever the government extends support, there will be a corresponding timeline given to Air India to deliver on those expectations," he said adding that the government will extend all help to the carrier to improve its performance.

He said the government was committed to disinvestment in Air India and it would go ahead with the plan when conditions are favourable. "At present, the conditions are not quite favourable. So, we are reviewing the situation," he said.

"We are committed to disinvestment at an appropriate time, when the situation improves and when we judge that there is a demand, we would certainly proceed again with the process," he added.

The government offered to sell 76 percent stake in Air India and the bidding process ended on May 31. However, the state-owned carrier, which has accumulated losses of Rs 46,805 crore, failed to attract any bidder.