After failing to attract buyers in the first attempt for disinvestment of debt-laden national carrier Air India, the government has now decided to proceed with an alternative plan
After failing to attract buyers for disinvestment of debt-laden national carrier Air India in June this year, the government has now decided to proceed with an alternative plan, which is the strategic sale with the divestment of 100% of ground holding services, TV news channels reported. The ground holding services of Air India is called Air India Air Transport Services Ltd (AIATSL).
The approval comes amid the government working on ways to revive the fortunes of Air India — estimated to have debt burden of more than Rs 50,000 crore –, including the sale of non-core assets, PTI reported.
“The Alternative Mechanism has approved EoI (Expression of Interest) together with Preliminary Information Memorandum for Air India Air Transport Services Limited (AIATSL) sale,” the news agency reported quoting an official.
In June this year, the government received a huge setback when not a single bidder submitted Expression of Interest (EoI). It was the second time in nearly two decades when stake sale plan of Air India failed. In 2001 also, under the NDA-I government, the disinvestment process was scrapped.