The Union cabinet today cleared disinvestment of debt-laden Air India but the final modalities, including the quantum of stake sale, will be decided by a group of ministers.
Union Finance Minister Arun Jaitley said the cabinet has given ‘in-principle’ approval for disinvestment of Air India.A group will be set up to finalise modalities/details of disinvestment of Air India, including the quantum of stake sale, he said.
The airline has a debt of more than 52,000 crore rupes and is surviving on a 30,000 crore rupees bailout package extended by the previous UPA government in 2012.
Surviving on taxpayers’ money, Air India has been in the red for long and various proposals, including government think tank Niti Aayog’s suggestion for complete privatisation, have been made.
The civil aviation ministry is charting out the disinvestment of the state-run carrier.