Panel of union ministers to oversee process of Air India stake sale

July 03, 2017: A panel consisting Nitin Gadkari, Suresh Prabhu, Piyush Goyal, Ashok Gajapathi Raju and headed by finance minister Arun Jaitley will finalise the structure and procedure of privatizing Air India.

The process might start by December as the government wants the process to be finalised speedily.

The Union cabinet cleared the divestment of debt-laden Air India and five of its subsidiaries last week. It said the ministerial panel will decide on how much stake will be divested and the universe of bidders — whether a foreign company can bid.

The panel will also determine how the airline's unsustainable debt will be treated, the spinning off of assets to a shell company, and demerger and strategic disinvestment of three profit-making subsidiaries.

The government decided to sell Air India after hopes of the airline's revival turned bleak.

The national carrier has a total debt of around Rs 50,000 crore and an annual interest outgo of Rs 4,500 crore. It is surviving on a 2012 bailout package, under which it has so far received Rs 24,000 crore.

Last month NITI Aayog had recommended complete divestment of Air India.