Air India stake will invite soon for bids by the government after potential buyers baulked at an initial attempt to divest a partial stake in the national carrier.
A sale of Air India is key for the Union government to meet its ambitious disinvestment target of Rs 1.05 trillion for the year to 31 March. Meeting the target is crucial this year as the government estimates that its corporate tax rate cut will lead to a revenue loss of Rs 1.45 trillion. Air India has been surviving on a Rs 30,000 Crore government bailout and has ceded market share to private airlines such as IndiGo and SpiceJet.
The ministerial panel to divest Air India, met first time on 19th September, headed by Home Minister Amit Shah to explore all options. It also includes Finance Minster Nirmala Sitharaman, civil aviation minister Hardeep Puri and railway and Tarde Minister Piyush Goyal. The panel is likely to meet to formally clear the privatization process of Air India.
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