Nifty99000 100%

Sensex99000 100%

Article rating: 4.7
Tags:
Article rating: 4.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: No rating
Tags:
Article rating: 3.5
Tags:
Article rating: 4.2
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: No rating
Tags:
Article rating: 4.1
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
RSS

News

Govt planning strategic sale of 4 Air India subsidiaries soon

Author: PTI/Monday, September 17, 2018/Categories: Aviation

Govt planning strategic sale of 4 Air India subsidiaries soon

New Delhi - The government plans to soon initiate the strategic sale process for at least four subsidiaries of loss-making Air India, including Airline Allied Services Ltd (AASL) and Hotel Corporation of India (HCI), according to officials.

Besides, plans are on the anvil for selling the headquarter building of Air India in the national capital as well as various other land assets and buildings of the airline in different parts of the country.

The government has prepared a list of the airline's assets that could be hived off as part of the strategic sale plan for Air India and its subsidiaries, officials said.

According to them, the disinvestment process is likely to be initiated soon for four Air India subsidiaries -- AASL, HCI, Air India Air Transport Service Ltd (AIATSL) and Air India Engineering Service Ltd (AIESL).

While AASL, under the name Alliance Air, provides regional air connectivity, HCI owns and operates two hotels in Delhi and Srinagar, among others.

AIATSL provides ground handling and cargo handling services. AIESL is mainly into maintenance, repair and overhaul of engines.

Apart from the headquarters building, other assets proposed to be sold include Air India properties in Mumbai and Delhi.

Officials said the government also plans to sell various art works and artefacts.

In June, a ministerial panel chaired by Finance Minister Arun Jaitley deferred the strategic sale of the government's 76 per cent stake in Air India. Instead, it was decided that the government would look at sale of assets and subsidiaries of the national carrier to reduce the debt burden.

Air India, which has been in the red for long, had a debt burden of Rs 48,000 crore at the end of March 2017.

The government had originally proposed to offload 76 per cent equity share capital of the national carrier as well as transfer the management control to private players. However, the offer failed to attract any bidder when the deadline for initial bids closed on May 31.

The national airline is staying afloat on a bailout package extended by the previous UPA regime in 2012 and the government is also looking at ways to infuse more funds into the carrier.

For the current fiscal, the government expects to raise Rs 80,000 crore from strategic as well as minority stake sales in public sector enterprises.

So far this fiscal, the government has raised over Rs 9,220 crore by divesting stakes in state-owned companies.

Last year, the government had mopped up over Rs 1.03 lakh crore from PSU disinvestment. This was aided by country's oldest gas producer ONGC's Rs 36,915 crore acquisition of government-owned fuel retailer Hindustan Petroleum.

Print Rate this article:
No rating

Number of views (423)/Comments (0)

rajyashree guha

PTI

Other posts by PTI
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free