After failing to receive any bidders for the proposed strategic stake sale of Air India, the govt is re-examining its disinvestment process for the debt laden airlines. The government had announced its plans to sell up to 76% stake of the Air India but got no bidders till the last day of its auction in May.
According to media reports, the government is considering to include a clause requiring a minority state stake in Air India.
Quoting a senior official in the Ministry of Finance the report also said that the govt is open to re-examine its stake in the airlines as it does not intend to insist on keeping 24% of the company.
The ailing airline’s total debt stood at over Rs 48,000 crore at the end of March 2017.
The centre is likely to review the reason for the fiasco, and why the EoI (expression of interest) process was not able to cater the interest area of the bidders despite the proposal of selling 76 percent of Air India.
The centre needs to push for the sale of the national carrier with more determination now, as the persistent situation will have long term worse implications.
Delay in the sale of Air India will continue the mounting of its losses.