Air India sale: Now, government says IPO an option

NEW DELHI: The government is thinking about list of debt-laden Air India (AI) after the proposal for 76% strategic stake sale failed to attract any bidders, a supply said on Wednesday.

The supply within the government said various choices, together with possible list of the national provider, are being checked out. By selling stocks in an preliminary public offering (IPO), the state can retain keep an eye on of Air India and likewise lift money to fund its operations, a senior government reputable told newshounds in New Delhi, asking no longer be identified citing rules.

A group of ministers formed by the Ministry of Finance is thinking about different choices as well, however isn't in desire of giving keep an eye on to a international entity, the reputable said.

Read additionally: What a 100% privatised Air India would possibly mean

In a setback, the federal government on May 31 said no preliminary bids have been gained for the proposed stake sale in AI and various choices could be explored for the airline’s long run.

The list choice could also be being regarded as as there were issues amongst doable bidders about government holding 24% stake post disinvestment. Under the proposed plan, around Rs 33,000 crore debt would have remained with AI. AI’s debt burden used to be about Rs 50,000 crore on the end of March 2017.

Read: Report explains why Air India may just no longer be bought

Air India has debts to the music of Rs 50,000 crore and is surviving on a taxpayer-funded bailout. The provider hasn’t made cash since its 2007 merger with any other state-run home operator Indian Airlines.

Following the debacle ultimate month, the federal government is making plans to restore the process with new guidelines, together with re-examining a clause requiring a minority state stake, Subhash Chandra Garg, a senior reputable within the Ministry of Finance, said in an interview on Monday.

( With company inputs)
Air India sale: Now, government says IPO an option Air India sale: Now, government says IPO an option Reviewed by kailash soni on June 14, 2018 Rating: 5
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