Air India disinvestment: Puri says government determined to privatise the ailing carrier

Union Minister for Civil Aviation Hardeep Singh Puri today said that the government is determined to privatise Air India, adding that the first meeting of the alternative mechanism set up for the airline, headed by Home Minister Amit Shah, will be held soon, according to an IANS report.

The minister said the government is determined to get the airline`s privatisation process started and to get the best possible deal in a time-bound manner.

The minister told ANI, "We have to get the best possible deal and get it in the shortest time available. People are very much interested in acquiring Air India."

Notably, the Narendra Modi government had already made an attempt to sale the state-run airline, but the attempt was not successful due to conditions attached to the sale.

According to reports, a committee of secretaries headed by Cabinet Secretary PK Sinha had approved the plan to offload 95% stake in the ailing national carrier. The disinvestment plan is likely to be placed before a ministerial body headed by Union Home Minister Amit Shah, and a final decision may soon be taken. 

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Air India reportedly owes about Rs 4,500 crore to state-owned oil marketing companies in unpaid fuel bills, forcing the OMCs recently to stop oil supplies to the ailing airlines at six airports at Kochi, Pune, Patna, Ranchi, Vizag and Mohali, in the wake of payment defaults.