Government speeds up disinvestment process for 4 Air India subsidiaries

The disinvestment process might soon be initiated for four of Air India subsidiaries like AASL, HCI, Air India Air Transport Service Ltd (AIATSL) and Air India Engineering Service Ltd (AIESL).

The government last year announced to offload 76 per cent equity share capital and transfer the management control of the national carrier to private companies. (Image: PTI)

The Government of India is now planning to initiate the strategic sale process for at least four subsidiaries of the loss-making Air India. These properties include Airline Allied Services Ltd (AASL) and Hotel Corporation of India (HCI), new agency reported quoting Air India officials. The report also states that the airline is also planning to sell its headquarter building in New Delhi and other land assets and building which it holds in different parts of the country. A list of airline's assets has been prepared by the government which will sold as a part of the strategic sale plan for Air India and its subsidiaries. As per Air India officials, the disinvestment process might soon be initiated for four of Air India subsidiaries like AASL, HCI, Air India Air Transport Service Ltd (AIATSL) and Air India Engineering Service Ltd (AIESL). The report stated that government is also planning to sell different art works and artefacts of the airline. A panel chaired by Finance Minister Arun Jaitley in June this year deferred the strategic sale of the government’s 76 per cent stake in Air India. Instead, it was decided that the government would look at sale of assets and subsidiaries of the national carrier to reduce the debt burden. With over 48,000 crore debt burden, the government last year announced to offload 76 per cent equity share capital and transfer the management control of the national carrier to private companies. However, the bid failed to commence as it attracted no bidder when the initial deadline of bidding closed in May 2017. The government is reportedly looking ways to infuse more funds in Air India as the national airline stays afloat on the bailout package extended by the UPA-led government in 2012. For the current fiscal, the government expects to raise Rs 80,000 crore from strategic as well as minority stake sales in public sector enterprises.