Three days After Finance Minister Arun Jaitley favoured divestment in public owned Air India Niti Ayog- government’s think tank also recommended the same in a report.
“NITI Aayog has made recommendations for making Air India strong and viable. All courses of action are being examined. We have not closed any option,” Aviation Minister Ashok Gajapati Raju told reporters in Delhi.
Recommending strategic disinvestment of loss-making Air India, it has suggested stepping up investments in health and education. A decision on the future course of action would be taken by the cabinet.
Niti Aayog’s fourth report detailed a possible roadmap for Air India disinvestment which includes writing off loans to the tune of Rs 30,000 crore. AI has debt of around Rs 60,000 crore, which includes around Rs 21,000 crore of aircraft-related loans and around Rs 8,000 crore working capital.
It has also suggested that the real estate assets, which include prime properties in Mumbai’s Nariman Point and some places in Delhi like Vasant Vihar, be hived off into a separate company before offering up to 100% equity to a strategic partner.