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AI divestment announcement well thought out: Eco Survey

Press Trust of India  |  New Delhi 

The recent announcement of the towards privatisation of is a "well thought out decision", the Economic Survey II said today.

According to the Survey, there is a need for committed action plan on "privatisation and disinvestment of the national carrier to enhance its operational and management efficiency".

It is a major carrier of international traffic to and from India, accounting for 11.4 per cent of the total international travel, it added.

In June, the Cabinet Committee on Economic Affairs (CCEA) gave its in-principle approval to the strategic divestment of and its five subsidiaries.

The "recent announcement of the towards privatisation of is a well thought-out decision", the Survey said.

A group of ministers, headed by Minister Arun Jaitley, is working on the modalities of the proposed divestment.

The airline is surviving on taxpayers' money. The turnaround plan, approved by the previous UPA in 2012, provides for equity infusion of Rs 30,231 crore up to 2021, subject to the national carrier achieving certain milestones.

As part of the plan, various steps have been taken to cut costs and losses. These include route rationalisation and enhanced utilisation of new fleet.

The carrier has a debt burden of more than Rs 50,000 crore.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, August 11 2017. 17:42 IST