Air India “Maharaja” to Go Private

The government on Wednesday gave an in-principle approval to the disinvestment of Air India, Finance Minister Arun Jaitley announced after a Cabinet meeting. A Group of Ministers (GoM) will be formed under Finance Minister to look into the disinvestment which will decide on the scope of disinvestment, he said.

NITI Aayog, the government’s think tank has earlier suggested complete privatisation of the Air India, which has a debt burden of over Rs 52,000 crore.

The Tata Group in partnership with Singapore Airlines is interested in buying India’s national carrier Air India from the government, a report last week said. Indigo the other major airline has also shown its interest in taking stake in debt ridden national carrier.

Indian billionaire and head of the Mahindra Group conglomerate Anand Mahindra said he was not in contention to take on debt-laden Air India after the government said it would privatize the ailing national carrier.