The government has decided to sell its entire 100 per cent stake in Air India under the proposed disinvestment process, Union 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 for long and as part of revival efforts, the government has decided on disinvestment.
"After formation of the new government, Air India Specific Alternative Mechanism (AISAM) has been reconstituted and the re-initiation of the strategic disinvestment of Air India has been approved."
"AISAM has approved the 100 per cent sale of Government of India stake in Air India for the re-initiated strategic disinvestment of Air India," the Minister of State for Civil Aviation said in a written reply to the Lok Sabha.
Air India's net loss in 2018-19 is provisionally estimated to be Rs 8,556.35 crore. The minister said various measures, including enabling swift transition of Jet Airways aircraft to other airlines, have been taken to improve the aviation sector. Full service carrier Jet Airways shuttered operations in April due to cash crunch.
"Airports Authority of India (AAI) 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.