Government to sell its Entire Stake in Air India
As a part of the strategic disinvestment, On Monday, 27th January 2020, the Government of India has declared a bid document for selling its 100 percent stake in debt-laden Air India. Air India currently holds 50 percent shareholding in a joint venture with the Singapore Airport Terminal Services (AISATS Limited) and 100 percent stake in low-cost airline Air India Express, both of which will also be sold for which, for submitting an expression of interest the Government has set 17th March 2020 as the deadline for interested bidders.
In less than two years, for the second time, the Government has rolled out the process of selling a stake in Air India which was in the red for a long time.
Under the Government’s disinvestment process, Air India staff will be offered three percent of the total share of airlines. Air India is under a debt trap since its financial position is very fragile and the private sector can bring required capital to the Airline. Earlier in 2018, the Government had tried to sell a 76 percent stake with an offload of about 5.1 million dollars of its debt.
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Month: Current Affairs - January, 2020