A Preliminary Information Memorandum (PIM) is likely to be floated in July as the divestment is part of a 100-day agenda.
Government is working on finalizing a fresh divestment plan for Air India and may even consider offloading 99-100 percent stake in the national carrier, according to a CNBC-TV18 report.
A Preliminary Information Memorandum (PIM) is likely to be floated in July as the divestment is part of a 100-day agenda. PIM provides all necessary information for participants in a divestment process.
The ministerial panel on the divestment is yet to meet and give its go-ahead to the fresh divestment plan.
In February, Moneycontrol had pointed out in its report that the budgetary support for the airline had dried up in the interim budget 2019-2020, hinting that the government could be well on the path of privatising it.
The government allocated a meagre Rs 100,000 as extra budgetary support for the debt-laden carrier which sits on an accumulated loss of Rs 55,000 crore. According to the budget document, Centre’s equity backing for the airline dropped by 99.99 percent to Rs 1 lakh against budgetary support of Rs 3,975 crore (revised estimate) during 2018-19.
Meanwhile, as per the CNBC-TV18 report, the airline is likely to activate 19 planes -- four B777s, two B787s and 13 A320s – that had been grounded for want of maintenance, by the end of September. The B787s will be revived soon, B777s by August and 13 A320s by September, the report suggested.India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
