(FE)
The disinvestment of troubled state-run carrier Air India is unlikely in the fiscal year 2017-18, a divergence from the initial plan of completing the process by early 2018. CNBC-TV18 reported citing government source that the disinvestment process may not complete in the current fiscal. Although, the capital infusion from the government will continue until the privatisation.
The government has decided on strategic disinvestment of loss-making Air India, which is guzzling up taxpayers’ money ridden with inefficiencies and mismanagement. The national carrier, under intense competition from more efficient and often-cheaper private airlines, is reeling under a debt of over Rs 52,000 crore. In September, the government of India had invited applications from investment bankers, law firms and other entities to advise on the strategic stake sale of the flag carrier. The Union Cabinet and the Air India Board had approved to sell the carrier in June. Officials want the process to offload all or parts of the airline by early 2018. A ministerial panel is working on the modalities.
