Air India News: The Ministry of Finance is preparing proposals with renewed reactions to the sale of Air India by the government. The new proposal is likely to include issues such as crude oil prices and fluctuations in exchange rates.
Advisory company EY last year had counted them for possible reasons, due to which the national aviation firm had not got any buyers. The proposal of the Ministry will be forwarded to Air India Specialty Mechanism (AISAM). In this, the ministry can propose to sell 100 percent or 76 percent stake of the government in Air India.
AISAM is primarily a group of ministers. Because Arun Jaitley and Suresh Prabhu are not involved in the new Cabinet, it will have to be reconstituted. In place of these two, Finance Minister Nirmala Sitharaman and Hardeep Singh Puri would now be included. There is a possibility of re-joining Transport Minister Nitin Gadkari at the time of the reconstitution of the committee.
The government had invited bids for 76% stake and management control of Air India last year but no one has bid for it. After this, EY, who gave advice on mergers and acquisitions, had prepared a report, which mentioned the reasons for the failure of the sales process.
For these reasons, 24 percent of the government's share, excessive debt, crude oil prices and fluctuations in exchange rates, changes in macroeconomic environment and other factors were counted. An official said that the report of the EY was discussed at AISAM meeting in June last year. After this Air India's sales process was postponed.
The official said, "We will keep a new proposal before AISAM on the sale of Air India. The issue raised after the failure of Air India to disinvestment last year will also be included. AISAM will have to decide whether the government will sell 100 percent stake or 76 percent. '
