No Air India disinvestment in near future: Govt

The government has shelved plans for Air India disinvestment in the near future. It will now be taken up only after the global economic indicators, including oil prices, stabilise.

“In view of volatile crude oil prices and adverse fluctuations in exchange rates, the present environment is not conducive to stimulate interest amongst investors for strategic disinvestment of Air India in immediate near future,” Minister of State for Civil Aviation Hardeep Singh Puri said on Thursday.

“The issue would be revisited once global economic indicators including oil prices and forex conditions stabilize,” he said in a reply to a Lok Sabha question.

The government, in the meanwhile, has prepared a revival plan for Air India which includes a comprehensive financial package, Puri said.

The revival plan of Air India focuses on the operational efficiencies so that a substantial increase in revenue or cost saving can be achieved, he said.

Last year, the Centre had invited Expression of Interest for strategic disinvestment of Air India, including its shareholding in Air India Express and Air India Air Transport Services Limited. However, it did not receive any bid till the last date on May 31, 2018.

The total debt on Air India as on March 31 id Rs 58,352 crore. The government has invested Rs 17,320 crore on Air India since 2015.