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Modi government plans Air India`s divestment by year-end: Sources
During its first term, the Modi government had tried to exit from the debt-burdened Air India, but it failed to get any potential buyer, and had to eventually defer plans of divestment.
New Delhi: The Narendra Modi government's second bid to sell Air India may be finalised by the end of this year, sources told Zee Media.
Sources further added that the government will invite expressions of interest for the financially-crippled national carrier by October, but before doing that it will conduct roadshows to meet prospective buyers.
In her Union Budget 2019 speech, Finance Minister Nirmala Sitharaman had said that the government will reinitiate the process of strategic disinvestment of Air India, and offer more CPSEs for strategic participation by the private sector.
The Finance Minister had also set a target of Rs 1, 05,000 crore of disinvestment receipts for the FY 2019-20.
The Finance Minister had added that government is considering, to go below 51 percent to an appropriate level, on case to case basis, in case where the undertaking is still to be retained in government control.
The government also decided to modify present policy of retaining 51% stake inclusive of the stake of Government controlled institutions.
During its first term, the Modi government had tried to exit from the debt-burdened Air India, but it failed to get any potential buyer, and had to eventually defer plans of divestment.