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Govt committed to strategic disinvestment of Air India: Puri

Govt committed to strategic disinvestment of Air India: Puri

India Blooms News Service | @indiablooms | 11 Jul 2019, 02:19 pm

New Delhi, July 11 (UNI): The Union government on Thursday told the Lok Sabha that it is committed to the strategic disinvestment of national airline Air India.

Replying to a question on Air India during Question Hour, civil aviation minister Hardeep Singh Puri said there has been growth of 17 per cent in domestic civil aviation market despite the closing down of Jet Airways.

The minister said there is no shortage of flights despite the closure of Jet Airways. He said it is not Air India alone which is facing financial loss, most of the other airlines are also facing financial difficulties due to variables like aviation turbine fuel (ATF) prices and 28-30 per cent VAT levied on the fuel, and currency fluctuations.

The minister said the government has decided to privatise Air India and it will benefit the citizens. "We will privatise Air India and will ensure that the company remains in Indian hands," he said.

In a written reply to a question, the minister said: "Even as the government is committed to the disinvestment of Air India, it has approved a revival plan of Air India with financial support which focusses on building a competitive and profitable airline group."

The financial support includes a cash support of Rs 3,975 crore to Air India, transfer of debt amount to Rs. 29,464 crore from Air India Limited to Special Purpose Vehicle (SPV), providing government guarantee of Rs 7,600 crore to Air India Limited and Rs 1,300 crore to SPV to meet the interest for 2018-19 on the debt transferred to the SPV, he said.

Govt committed to strategic disinvestment of Air India: Puri

India Blooms News Service
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