Insta
Efforts to get rid of the national carrier have not yielded fruit as nobody is willing to take on its debts. (Mulag/Wikimedia Commons)
It is being reported that the government is firming up plans to sell four Air India subsidiaries as it looks to meet the divestment targets for the current fiscal. The Department of Investment and Public Asset Management (DIPAM) has identified Air India Engineering Services Ltd, Air India Air Transport Service, Hotel Corporation of India and Airline Allied Services Limited as the four subsidiaries which will be on the chopping block.
It is expected that the government would also monetise the total investment of Air India in these subsidiaries which is estimated to be in the range of Rs 1,598 crore and trade investments worth Rs. 73 crore. It would be pertinent to note that the government had earlier tried to privatise the airline, but the effort did not succeed as there were no willing buyers in the market. Part of the reason for the lack of interest in the airline is its high debt burden.
Subsequent to the government’s failure to privatise the airline, it was suggested that another means of doing so would involve selling the airline’s assets, which included land, buildings and its subsidiaries like the ground handling unit and engineering services. With the value realised from such a sale, debts can be offset. It appears that the government has heeded this course of action in putting four of the airline’s subsidiaries on the block.
Assets of eight other Public Sector Units (PSUs) are also expected to go under the hammer with the identified PSUs being Pawan Hans, Project & Development India Ltd, Hindustan Prefab Limited, Bridge and Roof Company, Scooters India Limited, Bharat Pumps and Compressors Ltd, Hindustan Newsprints Limited and Hindustan Fluorocarbons.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest