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Air India stake sale: Govt on ‘wait and watch’ mode for subsequent three-four months, says union minister Nitin Gadkari

Air India stake sale: Govt on 'wait and watch' mode for next three-four months, says union minister Nitin Gadkari

New Delhi: The federal government has determined to “wait and watch” for the following three-four months earlier than taking a name on disinvestment of nationwide service Air India as a consequence of prevalent market situation particularly excessive gas costs, Union Minister Nitin Gadkari stated on Wednesday.

The federal government’s proposed stake sale in Air India failed to draw any preliminary bidder when the deadline for bidding ended on 31 Might.

“Market situation just isn’t proper for Air India disinvestment now. In view of this we’re retaining a wait and watch coverage for the following three to 4 months,” Gadkari, who holds a number of portfolios resembling highway, transport, highways, transport and water assets, informed PTI right here.

Representational picture. Reuters

The minister stated given the excessive gas costs at current, the viability of the transfer can be judged earlier than going forward with the disinvestment course of.

Beneath the Air India disinvestment plans, the federal government was to promote 76 % stake within the nationwide service together with full divestment of low-cost arm Air India Categorical and a 50 % stake in Air India SATS Airport Providers Pvt Ltd — an equal three way partnership with Singapore-based SATS.

Earlier, Minister of State for Civil Aviation Jayant Sinha had stated the federal government was dedicated to strategic disinvestment of Air India. “What the modalities are, what the circumstances are, now we have to observe and consider as we go alongside,” he had stated.

On the finish of March 2017, the service had a debt burden of round Rs 48,877 crore. Of the entire quantity, Rs 17,360 crore was associated to plane and Rs 31,517 crore pertained to working capital loans.

In Might, Air India’s market share stood at 12.eight %.

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