Air India disinvestment gets in-principle Cabinet approval

Air India
The Union Cabinet on Wednesday cleared the sale of government stake in debt-laden Air India, but the final modalities, including the quantum of stake sale, will be decided by a group of ministers, Finance Minister Arun Jaitley announced. 

“The Cabinet has given an "in-principle" approval to the stake sale,” Jaitley told reporters.

 

A group will be set up to finalise modalities and details of disinvestment of Air India, including the quantum of stake sale, Jaitley said.

 

The civil aviation ministry is charting out the disinvestment of the state-run carrier.

 

Surviving on taxpayers’ money, Air India has been in the red for long and various proposals, including government think-tank NITI Aayog's suggestion for complete privatisation, have been made.

ALSO READ:   Air India disinvestment: Workers want govt to waive debt, not sell airline

The airline has a debt of more than Rs 52,000 crore and is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012.

#Cabinet approves signing of a Memorandum of Cooperation between India and the USA on Homeland Security pic.twitter.com/pXa4DLf2F0

— Frank Noronha (@DG_PIB) June 28, 2017

Air India disinvestment: A timeline

1932:
J.R.D. Tata establishes the airline as Tata Airlines
 
1948: Government acquires 49% stake starts operation as Air India International
 
1953: Government takes 100 per cent stake in the company 
 
1962: Air India International rebranded as Air India
 
2000: Vajpayee government clears proposal to disinvest stake in both Air India and Indian Airlines
 
2007: Air India and Indian Airlines merged into single entity named as National Aviation Company of India Limited (NACIL)
 
2012: UPA approves turnaround plan for the airline and infuse over Rs 30,000 crore till 2021 
 
2017: NDA govt approves in-principle approval of Air India's disinvestment

Other decisions

Among other key decisions taken by the Union Cabinet on Wednesday were approval to the recommendations of the 7th Pay Commission for increase in allowances of 4.7 million central government employees, signing of a Memorandum of Cooperation between India and the US on Homeland Security, and an MoU between India and Israel on National Campaign for water conservation in India.

#Cabinet approves Recommendations of 7th CPC on Allowances with 34 modifications; revised rates effective from 1 July 2017 pic.twitter.com/ZB8300YMCf

— Frank Noronha (@DG_PIB) June 28, 2017

2/5 #Cabinet approves Recommendations of 7th CPC on #Allowances with 34 modifications; revised rates effective from 1 July 2017 pic.twitter.com/xUD6yGXr6d

— Frank Noronha (@DG_PIB) June 28, 2017

3/5 #Cabinet approves Recommendations of 7th CPC on #Allowances with 34 modifications; revised rates effective from 1 July 2017 pic.twitter.com/JtBk8mUsvh

— Frank Noronha (@DG_PIB) June 28, 2017

4/5 #Cabinet approves Recommendations of 7th CPC on #Allowances with 34 modifications; revised rates effective from 1 July 2017 pic.twitter.com/RJLpqJaNJq

— Frank Noronha (@DG_PIB) June 28, 2017

5/5 #Cabinet approves Recommendations of 7th CPC on #Allowances with 34 modifications; revised rates effective from 1 July 2017 pic.twitter.com/cCY2NQnkDG

— Frank Noronha (@DG_PIB) June 28, 2017

#Cabinet approves MoU between India and Israel on National Campaign for #WaterConservation in India. pic.twitter.com/EKQc0zNDto

— Frank Noronha (@DG_PIB) June 28, 2017

 

#Cabinet approves signing of a Memorandum of Cooperation between India and the USA on Homeland Security pic.twitter.com/pXa4DLf2F0

— Frank Noronha (@DG_PIB) June 28, 2017

#Cabinet approves recommendations of @NITIAayog on disinvestment of #AirIndia and five of its subsidiaries pic.twitter.com/FX2tOGVtdi

— Frank Noronha (@DG_PIB) June 28, 2017