 "Air India disinvestment gets in-principle Cabinet approval")
The Union Cabinet on Wednesday cleared the sale of government stake in debt-laden Air India, but the final modalities, including the quantum of stake sale, will be decided by a group of ministers, Finance Minister Arun Jaitley announced.
“The Cabinet has given an "in-principle" approval to the stake sale,” Jaitley told reporters.
A group will be set up to finalise modalities and details of disinvestment of Air India, including the quantum of stake sale, Jaitley said.
The civil aviation ministry is charting out the disinvestment of the state-run carrier.
Surviving on taxpayers’ money, Air India has been in the red for long and various proposals, including government think-tank NITI Aayog's suggestion for complete privatisation, have been made.
ALSO READ: Air India disinvestment: Workers want govt to waive debt, not sell airline
The airline has a debt of more than Rs 52,000 crore and is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012.
Other decisions
Among other key decisions taken by the Union Cabinet on Wednesday were approval to the recommendations of the 7th Pay Commission for increase in allowances of 4.7 million central government employees, signing of a Memorandum of Cooperation between India and the US on Homeland Security, and an MoU between India and Israel on National Campaign for water conservation in India.
“The Cabinet has given an "in-principle" approval to the stake sale,” Jaitley told reporters.
A group will be set up to finalise modalities and details of disinvestment of Air India, including the quantum of stake sale, Jaitley said.
The civil aviation ministry is charting out the disinvestment of the state-run carrier.
Surviving on taxpayers’ money, Air India has been in the red for long and various proposals, including government think-tank NITI Aayog's suggestion for complete privatisation, have been made.
ALSO READ: Air India disinvestment: Workers want govt to waive debt, not sell airline
The airline has a debt of more than Rs 52,000 crore and is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012.
Air India disinvestment: A timeline
1932: J.R.D. Tata establishes the airline as Tata Airlines
1932: J.R.D. Tata establishes the airline as Tata Airlines
1948: Government acquires 49% stake starts operation as Air India International
1953: Government takes 100 per cent stake in the company
1962: Air India International rebranded as Air India
2000: Vajpayee government clears proposal to disinvest stake in both Air India and Indian Airlines
2007: Air India and Indian Airlines merged into single entity named as National Aviation Company of India Limited (NACIL)
2012: UPA approves turnaround plan for the airline and infuse over Rs 30,000 crore till 2021
2017: NDA govt approves in-principle approval of Air India's disinvestment
Other decisions
Among other key decisions taken by the Union Cabinet on Wednesday were approval to the recommendations of the 7th Pay Commission for increase in allowances of 4.7 million central government employees, signing of a Memorandum of Cooperation between India and the US on Homeland Security, and an MoU between India and Israel on National Campaign for water conservation in India.
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