Air India to be 100% disinvested, bidders told: Aviation min says it's 'sell or close'

In a major development in the sale of flag carrier Air India Ltd, Civil Aviation Minister Hardeep Singh Puri revealed that the government will close the financial bids within 64 days. Civil Aviation Minister Hardeep Singh Puri also stated that this time the government is determined in the Air India disinvestment and there is no hesitance either. 

"We have decided that Air India will be 100% disinvested. Choice is not between disinvestment and non-disinvestment, it is between disinvestment and closing down. Air India is a first-rate asset but has an accumulated debt of Rs 60,000 Cr. We need to draw the slate clean," said Puri. 

Hardeep Puri also stated that the government is looking at a new timeline for Air India and the future owners for the troubled airline would walk in as early as the end of May or June this year. He said, "In the last meeting, on Monday, it was decided that the shortlisted bidders (for Air India disinvestment) be informed that the bids have to come in within 64 days. This time the Government is determined and there is no hesitation."

The Civil Aviation Minister had revealed that the government has no choice left. It will either privatise or close the airline. A loss of Rs 20 crore occurs every day despite Air India being operational now. Because of mismanagement, the airline has accrued a cumulative debt of Rs 60,000 crore. 

Minister Puri also stated that once the new owners of the national carrier are decided by June, it will take the government another six months to completely handover of the airline.

As per reports, Air India has shortlisted bids from the Tata Group as well as a consortium led by SpiceJet Chairman Ajay Singh in his personal capacity.

(Image Credits: PTI)