Cabinet gives ‘in principle’ approval for Air India disinvestment

The Government has given ‘in principle’ approval for considering strategic disinvestment of Air India and five of its subsidiaries. The Cabinet Committee on Economic Affairs gave its approval to fourth tranche recommendations of NITI Aayog on strategic disinvestment of CPSE (strategic disinvestment of Air India and five of its subsidiaries) based on the recommendations of Core Group of Secretaries on Disinvestment (CGD).
Constitution of an Air India-specific Alternative Mechanism headed by Minister of Finance including Minister for Civil Aviation and other Ministers will guide the process on strategic disinvestment from time to time and decide the treatment of unsustainable debt of Air India, hive off of certain assets to a shell company, demerger and strategic disinvestment of three profit-making subsidiaries, the quantum of disinvestment, and the universe of bidders.