AISAM reconstituted
The Government has approved the 100% stake sale in Air India via a specific alternative mechanism, Civil Aviation Minister Hardeep Singh Puri has told the parliament on 12 Dec 2019.
“After the formation of the new government (re-elected in May 2019), Air India Specific Alternative Mechanism (AISAM) has been reconstituted and the re-initiation of the strategic disinvestment of Air India has been approved,” said Puri in a written reply to Lok Sabha.
“AISAM has approved the 100% sale of the government of India stake in Air India for the re-initiated strategic disinvestment of Air India.”
The loss-making national carrier has a debt of over Rs.50,000 crore. Previously partial disinvestment attempts have failed.
Notably, the Air India’s net loss in 2018-19 is provisionally estimated to be Rs.8,556.35 crore.
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.
He pointed out that the government has taken various measures, including enabling swift transition of Jet Airways aircraft to other airlines, to improve the aviation sector. fiinews.com