While presenting the Union Budget 2021, Finance Minister Nirmala Sitharaman announced a proposal to privatise Air India. According to Business Standard, the government is expecting to fetch around Rs 15,000 crore from the sale of Air India’s subsidiary Air India Express and AISATS.
The Tata Group is leading the race to acquire Air India. This is the government’s second attempt at privatising Air India, a plan that has been delayed due to the COVID-19 pandemic.
Air India divestment expected to be closed in first quarter of FY-22 and the central government is taking up some of the major disinvestment proceeds on priority, particularly of Air India and Life Insurance Corporation (LIC) of India, according to Economic Affairs Secretary Tarun Bajaj.
“The suitors’ plans revolved around doing sale and leaseback of Air India’s owned aircraft and earn liquidity. But with the pandemic, the new owner may not require those aircraft or good value for those in the lease market,” a banker told Business Standard.
