New Delhi: Union Civil Aviation Minister Hardeep Singh Puri said at a press conference Thursday that the Narendra Modi government is looking at “total privatisation” of India’s debt-laden flag carrier Air India, with Home Minister Amit Shah at the wheel of the initiative.
Explaining why the government was looking to privatise the airline completely, Puri cited Air India’s Rs 60,000 crore debt, as well as efforts to expand air operations. The government believes it should not be running airports and airlines, he added.
“My real challenge these days is that I am getting demands from consumers to hire more planes. I asked the CMD Air India if they can lease more planes,” he said, “Our opinion is that the government should not be running airports and airlines.”
In 2018, the Modi government’s first bid to sell a 76 per cent stake in Air India came to nought because investors were apprehensive about the administration retaining a share in the airline.
However, the minister said the government had adopted an alternative mechanism this time around — while it invited bids straightaway in 2018, this time the initiative will be spearheaded by a group of ministers under Home Minister Shah.
“I am privileged to be a member of that alternative mechanism group and we are clear on what we are doing ahead,” added Puri.
“I am determined this time and this will be a successful thing. We have to get the best possible deal and we have to get it in the shortest time,” Puri said in his first media interaction as Civil Aviation Minister.
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‘Interested buyers’
Puri’s statement came a month after he said in the Rajya Sabha that the Modi government is committed to privatising the airline.
Puri, who was given the charge of civil aviation when the second Modi government was sworn in this May, said there are people who have shown much interest in acquiring Air India.
“There are people who are keen on acquiring Air India because it is a first-grade airline and whosoever acquires it will be fortunate enough, and, I am sure, will… run it according to strong private sector principles,” he added.
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Honourable Minister deserves praise for acknowledging a verity which none of his distinguished predecessors could. 2. Unlikely that anyone will buy Air India as a going concern with all its liabilities, starting with half a trillion in debt which, for all practical purposes, carries a sovereign guarantee. The government should be willing for any permutation and combination that puts an end to the continuing haemorrhage of resources. It has a legal and moral obligation to all AI employees, who must be treated with fairness.
H S Puri zindabad. Jawaharlal Nehru and socialist Narendra Modi murdabad,