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The first of the <keyword id="2573" type="General" weightage="80" keywordseo="air-india" source="Orion">Air India</keyword> aircraft with GE engines are expected to be service ready in 2023 itself, Vikram <keyword id="142" type="General" weightage="50" keywordseo="rai" source="Orion">Rai</keyword> - Country Head, South Asia and Indonesia of GE Aerospace said on Thursday. Air <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword>, part of Tata group, had signed an order for 40 GE engines, plus a multi-year engine services agreement. "The first of the new aircraft will enter service in late-2023, with the bulk to arrive beginning mid-2025," Rai said in an exclusive interview with ANI. "Air India already has started taking delivery of 36 leased B777 and A320 aircraft to accelerate its fleet and network expansion." Terming Air India's engine order as a "big opportunity" for the jet engines and systems suppliers company, he said it reflects continued confidence in GE Aerospace technology --which has been powering Air India's carriers for more than 40 years. Earlier this month, Air India, in a historic deal, announced it will buy 250 aircraft from Airbus and has also selected Boeing for the purchase of up to 290 planes as part of its growth strategy. Air India was looking for a mix of aircraft to boost their domestic and international network through recent orders. Soon after the divestment of the airline, the airline indicated it was going for a historic order. "This order further deepens that relationship," Rai added. When asked how GE sees Indian aviation space becoming a key player in the coming years with multiple stakeholders or companies looking to expand its base, he said the majority of the aircraft that domestic carriers have on order right now is expected to be powered by engines from GE Aerospace and CFM (a joint venture between GE Aviation and Safran Aircraft Engines). "Approximately 1,100 of the 1,200 aircraft that are currently on order will be powered by GE or CFM." India is the third-largest civil aviation market and it has the potential to expand exponentially with an increasing number of flyers and the country's economic growth story. "There are currently more people in the middle class--around 440 million--than the entire population of the US. But India has only 700 commercial aircraft, compared to the US's over 5000 aircraft. The potential to grow the commercial aviation market is huge. We are happy to help local airlines and also partner with airframers to bring the best of our technology to this market," he said. In the same breath, he said India is not just a market for GE Aerospace as it is also where it innovates on aerospace technology at its engineering centre in Bengaluru, in partnership with industry and academia. "We also source engine parts from 13 Indian manufacturers and from our own factory in Pune for our global supply chain," Rai added. India aims to develop itself as a Maintenance, Repair and Overhaul (MRO) hub for defence equipment and systems. "GE helped set up Air India's MRO facility that includes GE90 testing capabilities in <keyword id="4072" type="General" weightage="50" keywordseo="nagpur" source="Orion">Nagpur</keyword> in 2018-19. We are keen to help our partners set up service and maintenance capabilities locally," he told ANI. On a question posed what is GE's medium and long-term plan for Indian aviation space and also has been in touch with any other Indian carriers for similar deals, he, without getting into specifics, said, GE engages with various Indian carriers from time to time. "Other than this historic Air India order some of our notable previous orders for GE and our joint venture partner CFM includes: <keyword id="11911527" type="General" weightage="50" keywordseo="akasa-air" source="Orion">Akasa Air</keyword> with CFM for its LEAP-1B in 2021; IndiGo LEAP-1A order for 310 Airbus A320neo family aircraft in 2021; IndiGo for LEAP-1A to power 280 Airbus A320neo and A321neo aircraft in 2019; Vistara order for GEnx-1B engines for six Boeing 787 aircraft in 2018," he added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/oyo-plans-to-add-approximately-1800-premium-hotels-in-2023/articleshow/98180189.cms">OYO plans to double premium hotels in 2023 as biz travel surges</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/data-privacy-labels-for-most-top-apps-in-google-play-store-misleading-mozilla/articleshow/98181627.cms">Data privacy labels for most top apps in Google Play Store misleading: Mozilla</a>

First GE-made Air India aircraft to be service ready in 2023 itself

The Centre's top group of ministers looking into <keyword id="4708573" type="PERSON" weightage="20" keywordseo="Air-India-divestment">Air India divestment</keyword> is slated to meet on Saturday with the agenda ranging from extending the process to allowing greater debt re-structuring. These key decisions might come at a time when the divestment deadline of October 31 is fast approaching. The meeting of the AISAM (Air India Specific Alternative Mechanism), headed by Home Minister <keyword id="6355521" type="PERSON" weightage="20" keywordseo="amit-shah">Amit Shah</keyword>, will be conducted via video conferencing. Finance Minister Nirmala Sitharaman, Civil Aviation Minister Hardeep Singh Puri, Commerce Minister <keyword id="6355222" type="PERSON" weightage="20" keywordseo="piyush-goyal">Piyush Goyal</keyword> amongst others, will be participating. As per sources, extending the deadline for submission of initial bid or expression of interest (EoI) till December is on the cards. Another <keyword id="9602655" type="UNKNOWN" weightage="20" keywordseo="significant-change">significant change</keyword> that might be put forth for AISAM's approval will be a change in the deal's financial structure, especially concerning the airline's debt. Under this change, sources said that the bidders would be given the option to decide on the quantum of debt on the Air India books that they will like to absorb rather than freezing the debt amount and seeking investors' bids. As per the Air India EoI, floated by DIPAM in January, of the airline's total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286.5 crore, while the rest would be transferred to Air India Assets Holding Ltd (AIAHL), a special purpose vehicle. With the proposed changes, buyers will decide on the level of debt that they will take and the one taking the largest debt may be considered favourable to be declared winner. The Centre is, however, said to be finding it tough to get investors on board. A Tata Group-led consortium was considered the favourite to take over the airline earlier but its interest lately has been subdued. With foreign airlines bleeding over fall in air travel during the pandemic, getting investors would be difficult. But Air India, with vast pool of international flying slots and running overseas operations under the Vande Bharat scheme, is expected to get some investor interest. Air India has been been unprofitable since its 2007 merger with state-owned domestic operator Indian Airlines Ltd, and since then is flying on government budgetary support, adding pressure to central resources. Air India disinvestment will be a key component of this years sell target of Rs 2.1 lakh crore. The government has so far mobilised a mere Rs 5,500 crore as disinvestment receipts. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/list-of-indian-billionaires-who-dropped-out-of-school-or-did-not-go-to-school-at-all/slidelist/78829239.cms">From Mukesh Ambani to Azim Premji — Indian billionaires who dropped out of college or did not go to school at all</a>

AISAM likely to take key decisions on Air India divestment on Saturday

The core group of secretaries on disinvestment— all finance ministry secretaries, corporate affairs secretary and law secretary— is likely to meet today (October 28) and discuss the proposed stake sale in Air India by the Indian government. It will be the group's second meeting this month. The Narendra Modi government is striving to sell Air India to a private player after failing to find a bidder in its previous term. Recently, the cabinet approved new process for strategic disinvestment making possible stakeholder consultation before inviting bids. So far, the strategic disinvestment process didn't allow for stakeholder consultation before the government issued EOI. Today's meeting could move towards the next step of Expression of Interest (EoI) draft of Air India, sources told IANS. Air India's total debt stands at around ₹58,000 crore and cumulative loss, ₹70,000 crore. In the financial year ending March 31, 2019, the airline is estimated to have reported a loss of ₹7,600 crore. At the earlier meeting, the group of top bureaucrats cleared strategic sale in Bharat Petroleum Corporation of India (BPCL), Shipping Corporation of India (SCI), BEML and Container Corporation of India, and also discussed the EoIs for Air India. Stake sales in two power PSUs —THDC India and Neepco — were also approved. These two PSUs could be taken over by state-run NTPC. With inputs from IANS SEE ALSO: <a href="https://www.businessinsider.in/air-india-will-remain-with-an-indian-company-even-after-sale-says-minister/articleshow/70174990.cms" data-type="tilCustomLink" target="_blank">Air India will remain with an Indian company even after sale, says Minister</a>

India's top bureaucrats are meeting today to discuss Air India stake sale plan

<ul><li>With three months left until the end of the current financial year, the government has so far met only 5% of its <keyword id="787167" type="General" weightage="20" keywordseo="divestment-target" source="Orion">divestment target</keyword>.</li><li>Till now, it has raised ₹9,329 crore out of ₹1.75 lakh crore divestment target of FY22.</li><li><keyword id="7922409" type="General" weightage="20" keywordseo="lic-ipo" source="Orion">LIC IPO</keyword> is expected to fetch somewhere between ₹75,000 crore to ₹1.50 lakh crore to the government depending on how much stake it decides to sell.</li><li>Check out our <a href="https://www.businessinsider.in/bi-newsletter">weekly explainers</a> on the hottest topics and <a href="https://www.businessinsider.in/newsletters_signup.cms">sign up</a> if you like them.</li></ul>The union government might miss the divestment target for financial year 2022, which will be the third consecutive year where it fails to meet its ambitious numbers. Every year, the government sets a target amount it hopes to earn by selling stake in public sector enterprises, receiving dividends from owned companies, amount realised from exchange traded funds and so on. So far the government has only met merely 5% of its divestment target of ₹1.75 lakh crore and is short of ₹1.65 lakh crore more. The government has huge hopes of meeting its huge disinvestment target from the LIC IPO where it is reportedly expected to sell 5-10% of its stake. However, even after selling stake in the IPO, it would still not meet its divestment target, here’s how. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">How much will govt get from LIC IPO </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funds govt would receive </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Short of divestment target by… </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">If it sells 5% stake </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹75,000 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹90,671 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">If it sells 10% stake </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1.50 lakh crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹15,671 crore </td></tr></tbody></table><a href="https://economictimes.indiatimes.com/markets/ipos/fpos/lic-ipo-could-make-the-psu-indias-second-largest-company-after-reliance/articleshow/88850447.cms">Reportedly</a>, the government is pushing for a valuation of ₹15 lakh crore for the state-owned insurer that will soon file for the country’s biggest IPO before March 2022. So far the divestment proceeds of ₹9,329 crore came from the offer-for-sale of NMDC and the sale of some government-owned shares in Axis Bank. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Government divestment so far from trimming stake in below companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Approximately ₹9,329 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank through Sutti </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,994 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NMDC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,654 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hudco </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹726 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹742 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IPCL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹219 crore </td></tr></tbody></table>In FY21, the government met 16% of its ambitious divestment target of ₹2.10 lakh crore due to unexpected pandemic that hit the country In the last 10 years, only twice has the government been able to meet and even exceed its divestment target. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Divestment target </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% of target met </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY11 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹40,000 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">57% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY12 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹40,000 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">45% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY13 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹30,000 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">86% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY14 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹54,000 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">54% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY15 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹58,425 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">65^ </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY16 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹69,500 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">61% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY17 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹56,500 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY18 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹72,500 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">138% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY19 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹80,000 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">118% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1.05 lakh crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">48% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.10 lakh crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16% </td></tr></tbody></table>In the February 2021 budget, Finance Minister Nirmala Sitharaman said the government would sell stake in Shipping Corp of India, Air India, Neelachal Ispat Nigam Ltd, Container Corp of India, IDBI Bank, BEML Ltd and Pawan Hans, among others. Adding to it, the government was to privatise two state owned banks and sell stake in one insurance firm. The government is yet to sell stake in these public sector companies, and they seem unlikely before March 2022. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/tax-rates-and-rules-change-expected-from-budget-2022/articleshow/88899801.cms">Anomalies that need to be fixed in India’s startup regulations</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/budget-2022-expectation-in-higher-standard-deduction-tax-slabs-and-covid-insurance/slidelist/88891751.cms">From higher standard deduction and change in tax slabs to clarity on Covid insurance, here’s what tax experts want from Budget 2022</a>

Even after the LIC IPO, Indian government may be well short of its divestment target ⁠— for a third year in a row

<ul><li>Indian Oil threatened to stop supply of aviation turbine fuel to the airline, over unpaid dues.</li><li>Air India’s pilots also threatened the government with mass resignations if they go on with the divestment plan.</li><li>The debt of Air India has ballooned to a massive ₹60,000 crore and is struggling to carry on operations.</li></ul> The troubles of debt-laden Air India do not seem to come to an end. Even as the government is planning to go ahead with its divestment, today yet another state-owned company Indian Oil threatened to stop supply of aviation turbine fuel to the airline, over unpaid dues. BPCL and HPCL too said that they will cut off<a href="https://trak.in/tags/business/2019/10/14/air-india-flights-can-be-cancelled-after-october-18th-these-6-airports-will-be-affected-due-to-payment-crisis/"> fuel supplies unless</a> their bills, running into few thousands of crores, is cleared. This comes two days after the pilots union was enraged with the government’s plan to sell 100% of the national carrier. The pilots threatened a mass resignation if they plan to go ahead with it. Already as many as 120 pilots resigned in protest. In the Budget 2019, the finance minister Nirmala Sitaraman said that they plan to speed up the process of divestment, and is ready to make structural reforms. She also said that they plan to expedite it by October this year, but there has been no major movement. In the meanwhile, the debt of Air India has ballooned to a massive ₹60,000 crore, joining the ranks of state-owned telecom operators BSNL and MTNL who are struggling to carry on operations. This divestment could have brought in a new investor who could have help cut its debt, while providing the government with much-needed revenue as well. As government moves slowly in its planned sell-off, there is little interest from investors as well. In spite of rumours that Tata Group might bid for the airline, the group spokesperson insists that it <a href="https://www.thehindubusinessline.com/economy/logistics/air-india-buy-tata-sons-back-at-the-drawing-board-may-place-bid-soon/article29653782.ece">is speculation</a>. Yet another airline Jet Airways which was grounded in April this year, failed to find a bidder and its case is now with the bankruptcy court. This was in spite of billionaire Hinduja brothers showing interest in it.

Weeks ahead of divestment, Air India faces multiple threats of being grounded

<ul><li>The sale of the national carrier has always been a politically sensitive issue.</li><li>Reports suggest that the government may sell the airline but transfer just a fourth of the company's debt.</li><li>The proposal may give Narendra Modi's rivals ammunition to attack him for selling a national asset cheap.</li></ul>The sale of Air India has been contemplated for years, unsuccessfully. An attempt made in 2018 failed too. Now, there is a consensus like never before that the ailing national carrier must be disposed off to a willing investor. But, there may be a new twist in the tale that may make the issue political once again. According to an <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/new-air-india-sale-offer-may-keep-working-capital-debt-out/articleshow/71176962.cms" data-type="tilCustomLink" target="_blank">Economic Times report citing sources</a>, the government is looking to reduce the amount of debt on the books to a fourth of its original amount before selling the airline. When the government invited bids for Air India in 2018, the debt on the books was close to ₹59,000 crore. Of that, ₹29,400 crore was moved to a special purpose vehicle (SPV) that houses debt and assets of the national carrier. This amount is being repaid through government-guaranteed bond issues in three batches. Of the ₹30,000 crore remaining, about ₹15,000 crore is working capital debt, which the government may reportedly bear the burden. So, the potential buyer will only have the remaining ₹15,000 crore to shoulder-- just a fourth of the original amount. Making Air India attractive The idea is to make the debt-laden Air India, with all its operational inefficiencies, an attractive proposition for potential buyers. There was no response to the government's last call for bids. However, some of the factors have changed since last year. On the upside, the disappearance of Jet Airways from the Indian skies has helped airlines charge more for tickets and make some money out of it. So much so that Air India is hoping to turn profitable this year, for the first time in over a decade. On the downside, while India's aviation sector is expected to become the world's third largest aviation market by 2024, according to the International Air Transport Association, the passenger traffic has slowed down in recent months and that has dented performance for all airlines. The government is also hamstrung by its own ideological parent, the Rashtriya Swayamsevak Sangh's insistence that the airline must not be sold to a foreign peer. That leaves very few interested parties who may be interested or can afford to spend on buying an airline. While on the balance, the government will weigh out all its options, Prime Minister Narendra Modi's political rivals are unlikely to miss any opportunity possible to corner the government finding faults in the sale of Air India, a national asset that has evoked strong emotions in the past. SEE ALSO: <a href="https://www.businessinsider.in/emirates-wont-buy-air-india-but-spicejet-flights-under-code-share-likely-by-diwali/articleshow/70970408.cms" data-type="tilCustomLink" target="_blank">Emirates is not interested in Air India but is excited about its code share with SpiceJet</a>

Indian government is looking to sell Air India but may keep its debt

<ul><li>Strategic divestments in <keyword id="2573" type="COMPANY" weightage="20" keywordseo="Air-India">Air India</keyword>, BPCL and Container Corporation are "unlikely" to be completed in FY20.</li><li>The ministry has budgeted to garner Rs 1.05 lakh crore from divestments during the fiscal.</li><li><keyword id="6470244" type="UNKNOWN" weightage="20" keywordseo="dipam">Dipam</keyword>'s joint secretary Anuradha Thakur said the government is working hard with the regulators in order to ensure that the bond market gets maximum traction. </li></ul> In what can potentially hurt the fiscal math for the ongoing fiscal, a senior government official said strategic divestments in Air India, BPCL and Container Corporation are "unlikely" to be completed in FY20.
 Work on all these companies is on and the process is facing delays due to "surprises" encountered once the wheels have begun moving, the official from the Department of Investment and Public Asset Management (Dipam) said.
 The ministry has budgeted to garner Rs 1.05 lakh crore from divestments during the fiscal. The government has already breached the budgeted fiscal deficit gap and the extent of the gap stands at 115 per cent with four months to go.
 The official declined to comment on the impact of such events on the fiscal math.
 When asked if the strategic divestment in the <keyword id="156368" type="DOMAIN" weightage="20" keywordseo="Bharat-Petroleum-Corporation">Bharat Petroleum Corporation</keyword> (BPCL) -- which can alone fetch the government over Rs 60,000 crore if it were to sell its entire 53 per cent stake -- will be completed this fiscal, the official said, "unlikely". "We are not saying that for ourselves and our timelines are such that it should happen. But we know that the process throws up surprises," the official said speaking on the sidelines of an event here.
 Similarly, on Container Corporation (Concor) and Air India as well, the official said that the sales will not go through in the current fiscal ending March 31.
 The official said the government is preparing the financial statements and getting the data room ready for the sales, suggesting that such aspects take time.
 Till now, the industry has shown "excitement" over the companies which are being floated, the official said, adding that there are additional details which may be sought by potential bidders.
 When asked about the strategic sale in Shipping Corporation of India (SCI), the official said the sale is at a certain stage and going strong.
 The government, which had exceeded the budgeted divestment target last fiscal, has mopped up only Rs 12,359 crore of the Rs 1.05 lakh crore target as of September. According to media reports, the stake sale in SCI can fetch it Rs 2,000 crore and over Rs 13,000 crore can accrue from Concor.
 Meanwhile, Edelweiss Mutual Fund's Bharat Bond Exchange Traded Fund listed on the National Stock Exchange on Thursday with a marginally down opening.
 Dipam's joint secretary Anuradha Thakur said the government is working hard with the regulators in order to ensure that the bond market gets maximum traction.
 The next step for the stakeholders is to ensure that there is trading in bonds in the secondary market which will ensure liquidity for investors, she said.
 Rashesh Shah, the chairman and chief executive of Edelweiss, said the corporate bond exchange-traded fund (ETF) is the culmination of years of efforts by government, regulators and his group, and also added that it provides stability for investors as it includes only AAA-rated public sector bonds.

Indian government might not be able to close Air India BPCL divestments this fiscal

<ul><li>No talks as of now to bid for Air India, India &amp; Nepal Vice President Esa Sulaiman Ahmad told Business Insider. </li><li>The United Arab Emirates (UAE) airline executive said the company is focussed on organic growth in India. </li><li>Emirates' code-share agreement with SpiceJet may roll-out by Diwali, which is in end-October.</li></ul>The Indian government is keen on selling its stake in Air India and <a href="https://www.businesstoday.in/sectors/aviation/air-india-disinvestment-deal-by-october/story/362506.html">the process may kick off by October</a>. Yet, suitors are not lining up for the debt-ridden airline even as government uncharacteristically relinquishing 100% of its control. Amidst hectic parleys in the corridors of power, Emirates, owned by the government in the United Arab Emirates (UAE), has ruled out the possibility of a bid for Air India. "We are not looking at it. We are more focussed on seeing how we can grow better organically," Essa Sulaiman Ahmad, the Vice President of India and Nepal, said in a conversation with Business Insider. There are heated debates underway in many forums on whether Air India should be fully privatised. Should the buyer for the national carrier should be Indian or foreign? A few sections of the Bharatiya Janata Party (BJP) government seem keen to find the best possible price for the ailing Air India, but the BJP's ideological parent, the Rashtriya Swayamsevak Sangh (RSS), has a clear stand against selling the airline to a foreign peer. Subramanian Swamy's latest tweet on the proposed privatisation of Air India 
	<div type="twitter" handle="Swamy39" handlename="Subramanian Swamy" image="http://pbs.twimg.com/profile_images/1069415134882230272/ATG6qpfq_normal.jpg" favoritecount="13454" retweetcount="2923" status="The Civil Aviation Minister Hardip Puri has been misled by foreign consultancy firms and corrupt bureaucrats on pri… https://t.co/2ApcCIxWKy" createdat="1567087085000" id="1167073942357475329"></div>



 Cashing out of Air India is important for the Narendra Modi government looking to <a href="https://www.livemint.com/companies/news/how-air-india-sale-can-spur-govt-s-divestment-agenda-1562613367526.html">garner enough money to invest in</a> more productive ventures that may speed up the economic growth, which recently hit a six-year low of 5% between April and June 2019. The fact that the debt-ridden airline-- ₹55 000 crore at last count-- <a href="https://www.financialexpress.com/industry/air-india-losses-to-end-maharaja-may-break-even-this-year-after-a-decade-disinvestment-may-get-easier/1693527/">may reportedly clock a profit</a>, for the first time in a decade, may have helped the sale after many failed attempts in the past. However, the sale of Air India has been a political and an emotional issue, which the Emirates has steered clear of. Emirates code-share agreement with SpiceJet Meanwhile, Ahamad is excited about the code share agreement with SpiceJet, a budget airline based in India. "We will gain six new destinations in India," he said adding that the process is in its final stages. "The two tech platforms have to talk to each other and that is taking a little time," he said. The roll-out is likely by Diwali (late October) this year. The two airlines <a href="https://www.emirates.com/media-centre/emirates-to-expand-reach-in-india-with-spicejet-codeshare-partnership#targetText=Monday%2C%20April%2022%2C%202019%20%E2%80%94,Europe%20and%20the%20Middle%20East.">reached an agreement in April this year </a>to ride on each other's strengths. With a 15% market share, Emirates is already the biggest player in international flights flying to and from India and now, it wants more. SpiceJet is a popular carrier especially in the southern part of India which has frequent fliers to the Gulf countries. Emirates' expansion in India will depend on the review of bilateral agreement between India and UAE The entry of Singapore Air-backed Vistara into international routes, particularly in the Middle East, is a challenge to the likes of Emirates. However, there is a likelihood of expansion for Emirates in India if the two countries decide to revisit the bilateral agreements. "The last one was signed in 2014. There is no specific timeline for a review," he said. The grounding of Jet Airways has been a shot in the arm for airlines in tightly fought market like India. The average number of annual passengers in India is expected to treble to 520 million by 2037, and at that point, it would be the third largest aviation market in the world. Emirates wants a chunkier slice of that pie. SEE ALSO: <a href="https://www.businessinsider.in/air-india-will-remain-with-an-indian-company-even-after-sale-says-minister/articleshow/70174990.cms" data-type="tilCustomLink" target="_blank">Air India will remain with an Indian company even after sale, says Minister</a>

Emirates is not interested in Air India but is excited about its code share with SpiceJet

<ul><li>Millions of Indians are looking for changes in <keyword id="120700" type="PERSON" weightage="20" keywordseo="Income-Tax-slabs">income tax slabs</keyword> hoping for more disposable income.</li><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword>'s <keyword id="117156" type="PERSON" weightage="20" keywordseo="Budget-speech">budget speech</keyword> will be a tightrope walk that will have to blend the hopes of an economy slipping into slumber with the reality of limited resources.</li><li>Disinvestment in Air India and <keyword id="7170483" type="UNKNOWN" weightage="20" keywordseo="5G-Spectrum-sale">5G spectrum sale</keyword> could be the big money spinners for the goverment allowing it to spend freely in reviving a distressed rural economy.</li></ul>Finance minister Nirmala Sitharaman will present her maiden Budget and millions of Indians will be keenly watching if she fulfills many of the promises made by the Prime Minister Narendra Modi during his poll campaign that ended in the historic mandate. Millions of middle class Indians are hoping for tax breaks or rebates that will leave more money at their disposal at month end. But, the budget speech will hold a lot more of significance than just a change in income tax slabs. The lady in charge Sitharaman is India's first full-time Finance Minister to deliver the budget speech at 11 am. The Modi government has kicked off the second term with the promise of making Indian economy worth $5 trillion by March 2025. The narrative set by the Prime Minister himself has been followed by many of his team members as well as the newly-appointed Chief Economic Advisor K Subramanian. Some of the issues that the government has not been able to overcome in the recent past are the lack of jobs, the escalating rural distress, bone-dry private investment, and falling consumption. It is widely expected that the government will try to revive the economy's animal spirits-- a term used to describe people's level of confidence in the economy-- which will be essential to the lift the growth in Gross Domestic Product (GDP) from the five year low it hit in the January-March 2019 quarter. The right signals <keyword id="6147670" type="UNKNOWN" weightage="20" keywordseo="budget-2019">Budget 2019</keyword> offers an opportunity for the government to inspire confidence among the country's private investors who have shied away from betting their money on the country's economic prospects. That has led to a rise in unemployment as millions of young Indians join the workforce every year and there just aren't enough jobs created. That in turn has affected consumption. The two biggest numbers that are key to deciding the market confidence are the fiscal deficit projection for 2019-20 and the government borrowing programme. Fiscal deficit is the difference between the amount of money the government makes and the amount spent. The government had said in February that in 2018-19, the deficit would be 3.4% of the GDP. The fiscal deficit target for 2019-20 will decide whether the government takes its targets seriously. The excess of expenditure over earnings, the deficit, is met by borrowing money from the market. "From an investor point of view we want RBI, which is adeauately capitalised, and we want an economy which is adequately liquid. Today, apart from liquidity it is also transmission of credit which is also important. Today we have a scenario where PSU banks are not lending because they are not adequately capitalised," Nilesh Shah of Kotak Asset Management told Business Insider. Bank recapitalisation And that is one of the most significant numbers to look forward to in Sitharaman's speech-- the amount of money that the government will invest in state-owned banks that have been squeezed by a pile of bad loans threatening to rise further. In the last financial year ending March, the government invested a total of ₹1 lakh crore, according to Financial Services Secretary Rajiv Kumar in February. Still, there still isn't enough money floating around in the economy. "As a matter of fact if you look at the 50 year chart, the money supply has grown in the last few years at the same rate as it used to grow in the 1960s when the economy used to grow at 3-4%," market veteran Vallabh Bhanshali, Chairman of the Enam Group, told Business Insider. Banks need money (and confidence) to lend more and they are looking towards the government for support. Demands galore Essentially, everyone from the individual taxpayer to different industry segments-- from farmers to industrialists, from manufacturers to retailers, from real estate developers to banks to home buyers, from car makers to car buyers--- needs some kind of government support. Where is the money going to come from? Disinvestment One way of making up for the shortfall is for the government to sell stake, or fully priavatise, in companies that it owns. All eyes are on the hoardes of sick government companies that are sitting on millions of assets that are under-utilised and therefore, the companies are turning in losses for years. The most high-profile of them is Air India. The government has already indicated that it is looking for a strategic private investor in the airline. Government-owned telecom operators BSNL and MTNL are two other companies that have run out of cash even to pay salaries. Spectrum sale The other big source of government revenue is the sale of spectrum, which yields a lot of money. The government would want the upcoming auction of 5G spectrum to be a big money spinner but the bidders, the telecom operators are buried in debt. While the government would want 5G to give impetus to its Digital India programme, the 5G spectrum has to be reasonably priced. The Budget on the whole will be a tightrope walk. SEE ALSO: <a href="https://www.businessinsider.in/defence-budget-2019-20indias-defence-budget-has-nearly-doubled-in-5-years/articleshow/70037360.cms" data-type="tilCustomLink" target="_blank">India’s defence budget has nearly doubled in 5 years but the money is not enough to upgrade the weapons</a> <a href="https://www.businessinsider.in/niti-aayog-wants-education-budget-to-increase-further/articleshow/69941463.cms" data-type="tilCustomLink" target="_blank">India’s education budget has improved over the years — but it’s still too low</a> <a href="https://www.businessinsider.in/health-budget-2019-india-might-increase-spending-on-healthcare-but-that-may-not-be-enough/articleshow/69956156.cms" data-type="tilCustomLink" target="_blank">India might increase spending on healthcare but that may not be enough</a>

Income tax, bank recap, Air India, and 5G spectrum sale are some things to watch out for in Finance Minister Nirmala Sitharaman's first budget speech

Mumbai, May 7 () The disinvestment process for national carrier Air India looks "very uncertain" in the wake of the coronavirus pandemic that has impacted the aviation sector the most globally, according to rating agency Crisil. In another attempt to sell loss-making Air India, the government, in January this year, sought Expression of Interest (EoI) and the deadline for submission of EoI has now been extended till June 30. Initially, the deadline was March 17 and was first extended till April 30. "With the current kind of environment, for people to bid for a known airline like Air India and the kind of commitment that they would have to make, it looks very uncertain that their process can go through in the current scheme of things," Jagannarayan Padmanabhan, Director and Practice Leader (Transport and Logistics) at Crisil Infrastructure Advisory said on Thursday. However, Crisil expects mergers and acquisitions of airlines in the face of the losses that the domestic carriers are estimated to suffer in the current situation. "The EoI might have been issued but in the current situation, airlines are unlikely to take up any new assets on its books." he said. "The Air India part of privatisation will have to wait for its turn. What is the timeline, I don't know as of now. But the current environment may not be the best time to go through (the sale process)," Padmanabhan said. In 2018, the government's efforts to divest Air India failed to take off. At that time, 76 per cent stake in the airline was to be sold. Under the current disinvestment plan, the government has proposed to sell 100 per cent stake in the airline along with entire shareholding in AI Express and 50 per cent in ground handling joint venture -- Air India-SATS. Of the airline's total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286.5 crore, while the rest would be transferred to Air India Assets Holding Ltd (AIAHL), a special purpose vehicle. Padmanabhan said all airlines irrespective of their size or business model or nature of operations have been impacted due to the coronavirus outbreak and all are looking at how to survive in the current situation. According to him, the domestic aviation industry is expected to incur combined loss to the tune of up to Rs 25,000 crore, with the airline sector accounting for an estimated loss of Rs 17,000 crore. IAS ANUANU

Air India divestment process looks very uncertain amid COVID-19 crisis, says Crisil

<ul><li>The <keyword id="26362" type="ORGANIZATION" weightage="20" keywordseo="Government">government</keyword> will divest a 100% stake in <keyword id="2573" type="COMPANY" weightage="20" keywordseo="Air-India">Air India</keyword>’s profitable ground handling unit, Air India Air Transport Services (AIATS), and will use the proceeds of the sale to pay down the <keyword id="34984" type="ORGANIZATION" weightage="20" keywordseo="airline">airline</keyword>’s debts. </li><li>The decision is part of a larger turnaround plan that will see the government transfer around ₹300 billion of the airline’s short-term <keyword id="44647" type="ORGANIZATION" weightage="20" keywordseo="debt">debt</keyword> and certain non-core assets into a separate entity. </li><li>The government needs to make the heavily-indebted airline an attractive acquisition target following a failed sale earlier this year. </li></ul> India’s central government is not ready to give up on its loss-making national carrier, Air India. The government is moving ahead to divest a 100% stake in Air India’s profitable ground handling unit, Air India Air Transport Services (AIATS), according to RN Choubey, the Secretary of the Ministry of Civil <keyword id="31907" type="COMPANY" weightage="20" keywordseo="Aviation">Aviation</keyword>. The reason for the sale? The government needs to make the heavily-indebted airline an attractive acquisition target following <a href="https://www.businessinsider.in/after-a-botched-sale-the-indian-government-might-just-bail-air-india-out-again/articleshow/65323903.cms">a failed sale</a> earlier this year. However, as opposed to bailing out the airline at the expense of taxpayers, the government will use the proceeds of the sale to pay down Air India’s debt and interest liabilities. The government had tried to sell <a href="https://www.businessinsider.in/no-one-seems-interested-in-buying-air-india/articleshow/63697732.cms">a 76% stake</a> in the airline this past summer, but it received zero bids by the 31 May deadline. The primary reasons were the government’s decision to retain a 24% stake in the airline as well as the high amount of debt a buyer would have had to inherit, which was estimated to be around 70% of the airline’s total debt burden of ₹488 billion. Consequently, the government decided to focus on restructuring the airline’s operations while adopting a wait-and-see approach with regards to the <keyword id="44639" type="PERSON" weightage="20" keywordseo="divestment">divestment</keyword>. It has been <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/from-time-to-time-government-is-providing-support-to-air-india-r-n-choubey/articleshow/66694176.cms">infusing funds</a> in small amounts in Air India in order to meet its working capital needs like paying salaries and suppliers. The decision to sell off Air India’s ground handling unit is part of a larger turnaround plan wherein the government will cut operating costs, sell land holdings and transfer around ₹300 billion of the airline’s short-term debt and certain non-core assets into a special purpose vehicle called Air India Assets Holding. The sale document will only be released once AIATS is hived off into this separate entity. The actual purpose of the special purpose vehicle is to service more than half of Air India’s debt by selling off its assets. The overall goal of these actions is to generate more enthusiasm from prospective buyers. The government still intends to privatise Air India as opposed to liquidating it or worse, maintaining complete ownership -- certain to be a drain on the Exchequer. SEE ALSO: <a href="https://www.businessinsider.in/no-one-seems-interested-in-buying-air-india/articleshow/63697732.cms">No one seems interested in buying Air India</a> <a href="https://www.businessinsider.in/after-a-botched-sale-the-indian-government-might-just-bail-air-india-out-again/articleshow/65323903.cms">After a botched sale, the Indian government might just bail Air India out again</a> <a href="https://www.businessinsider.in/the-indian-government-is-planning-a-rescue-package-for-the-aviation-sector-as-the-losses-pile-up/articleshow/65681289.cms">The Indian government is planning a rescue package for the aviation sector as the losses pile up</a>

The Indian government is trying to make its struggling national carrier an attractive acquisition target by selling off a profitable subsidiary

<ul><li><keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword>’s debts are reported to be as high as ₹ 700 billion. </li><li>The airlines might lose $1-2 billion in FY19/FY20, says CAPA, a consulting firm. </li><li>Deadline for bids extended till 31 May 2018.</li></ul>Air India (AI) may have to shut down based on the findings of aviation consulting firm CAPA India. The bleeding airline went up for sale on 28 March 2018. AI’s debt was ₹520 billion as of <a href="https://qz.com/1239614/air-india-sale-government-offers-new-owner-full-control-and-half-the-debt/">fiscal 2017</a> but the <a href="https://timesofindia.indiatimes.com/business/india-business/air-india-sale-off-to-begin-with-airline-arm-other-three-units-to-follow-suit/articleshow/63199280.cms">report finds</a> this could be as high as ₹700 billion. @capa_india tweeted, 
 
 
 
 
 
 
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 On March 28, the Indian government had issued a Preliminary Information Memorandum (PIM) inviting Express of Interest (EoI) for the strategic divestment of AI, along with the airline's shares in AIXL (Air India Express) and AISATS (Air India SATS Airport Services) from private entities including the airline's employees. The central government currently owns 100% equity of Air India. In turn, the airline holds full stake in Air India Express and 50% stake in the joint venture AISATS. The government has planned to <a href="https://www.ndtv.com/business/air-india-might-shut-down-if-divestment-bid-fails-capa-india-1847715?pfrom=home-business">divest 76% of the its stake in AI</a>, 100% in AIXL and 50% in AISATS. 
 
 
 
 
 
 
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 CAPA also predicted that AI will be at a loss of approximately $2 billion for fiscal 2019 and 2020. All the big players of the airline industry, including <keyword id="832409" type="COMPANY" weightage="20" keywordseo="The-Tata-Group">the Tata Group</keyword>, <keyword id="6354706" type="DEFINITION" weightage="20" keywordseo="IndiGo">Indigo</keyword> and <keyword id="6358200" type="ORGANIZATION" weightage="20" keywordseo="jet-airways">Jet Airways</keyword>, have <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/why-potential-buyers-are-dropping-out-of-air-india-sale/too-much-debt-and-no-clarity/slideshow/63714845.cms">reportedly</a> already backed off due to the huge debt and no clarity on the terms offered by the government. The government has extended the submission for the EOI bids of AI divestment process to 31 May 2018.

India’s flagship airline may be shutting down if divestment bid fails

The <keyword id="6355512" type="ORGANIZATION" weightage="100" keywordseo="Union-Cabinet">Union Cabinet</keyword> gave the in principal approval to the <keyword id="58151" type="ORGANIZATION" weightage="20" keywordseo="civil-aviation-ministry">Civil Aviation ministry</keyword>’s proposal to disinvest stake in <keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword>. The Group of Ministers will decide on the quantum of disinvestment, mechanism of divestment, assets and debt of Air India and hotel companies owned by Air India. Finance Minister, <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> said, “The Civil Aviation ministry made a request that the Finance Minister will head the group. “In this government, the groups are set up very fast…The Prime Minister will decide the composition of the group, only the chairman has been decided today,” he added. The recommendations of the group will have to be approved by the cabinet.

You Searched For "air india divestment" and got 13 results

First GE-made Air India aircraft to be service ready in 2023 itself

ANI

AISAM likely to take key decisions on Air India divestment on Saturday

IANS

India's top bureaucrats are meeting today to discuss Air India stake sale plan

Sriram Iyer

Even after the LIC IPO, Indian government may be well short of its divestment target ⁠— for a third year in a row

Bhakti Makwana

Weeks ahead of divestment, Air India faces multiple threats of being grounded

Katya Naidu

Indian government is looking to sell Air India but may keep its debt

Sriram Iyer

Indian government might not be able to close Air India BPCL divestments this fiscal

PTI

Emirates is not interested in Air India but is excited about its code share with SpiceJet

Sriram Iyer

Income tax, bank recap, Air India, and 5G spectrum sale are some things to watch out for in Finance Minister Nirmala Sitharaman's first budget speech

Sriram Iyer

Air India divestment process looks very uncertain amid COVID-19 crisis, says Crisil

PTI

The Indian government is trying to make its struggling national carrier an attractive acquisition target by selling off a profitable subsidiary

Dilsher Dhillon

India’s flagship airline may be shutting down if divestment bid fails

BI India Bureau

Union Cabinet gives in-principal nod to divest Air India

BI India Bureau

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