Advertisement
Monday, Oct 25, 2021
Outlook.com
Outlook.com

Air India’s Disinvestment Process To Be Completed In 2021-22: Finance Minister Nirmala Sitharaman

While presenting the Union Budget on Monday, Finance Minister Nirmala Sitharaman said that the Centre has allocated Rs 2,268 crore for a special purpose vehicle set up as part of financial restructuring of Air India

Air India’s Disinvestment Process To Be Completed In 2021-22: Finance Minister Nirmala Sitharaman
Representational Image
Air India’s Disinvestment Process To Be Completed In 2021-22: Finance Minister Nirmala Sitharaman
outlookindia.com
2021-02-01T16:04:10+05:30

During her budget speech on Monday, Finance Minister Nirmala Sitharaman announced that disinvestment of Air India will be completed in 2021-22 and said that the Centre has allocated Rs 2,268 crore for a special purpose vehicle set up as part of financial restructuring of the debt-laden national carrier.

Also read: Dissecting Union Budget 2021: Here’s What The Experts Say

The finance minister also proposed tax exemption for aircraft leasing companies.
Air India is currently under disinvestment process. Multiple entities submitted their expression of interests (EOIs) for the carrier last month. The government is likely to reveal the names of qualified bidders in the coming weeks.

Air India Asset Holding Ltd, a special purpose vehicle (SPV), has been set up as part of financial restructuring of the debt-laden national carrier. According to documents presented in the Budget for 2021-22, Rs 2,268 crore has been allocated for the SPV for the next financial year.

Sitharaman said that disinvestment of Air India and Pawan Hans would be completed in 2021-22.

In the Union Budget for 2021-22, the Ministry of Civil Aviation has been allocated Rs 3,224 crore, which is 22 per cent lower than Rs 4,131 crore that was allocated for the current fiscal. The budget last year had allocated Rs 3,797 crore to the ministry for 2020-21, but in revised estimates it was increased to Rs 4,131 crore.

The government on Monday allocated Rs 600 crore, 14.28 per cent lower than the current fiscal, to its regional connectivity scheme ‘Udan’ for 2021-22.

Under the Udan scheme, financial incentives from the Centre, state governments and airport operators are extended to selected airlines to encourage operations from unserved and under-served airports, and keep airfares affordable.

Sitharaman said in her speech that the government would be monetising assets of the AAI-operated airports in tier-2 and tier-3 cities to raise money for building new infrastructure.

The Airports Authority of India (AAI), which works under the Civil Aviation Ministry, owns and operates around 100 airports in India.

(With PTI inputs)

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

'Phir Bhi Dil Hai Hindustani': Shah Rukh Khan As The Symbol Of Indianness

'Phir Bhi Dil Hai Hindustani': Shah Rukh Khan As The Symbol Of Indianness

SRK’s persona evokes the kind of Indianness that denies categorisation into singular, exclusive identities. And thrives on making others feel welcome.

Aryan Khan Case: Witness Alleges NCB Asked For Rs 18 Crore Bribe From Shah Rukh Khan

Aryan Khan Case: Witness Alleges NCB Asked For Rs 18 Crore Bribe From Shah Rukh Khan

Aryan Khan, who is currently lodged in Mumbai's Arthur Road Jail, was arrested on October 2 on a cruise in connection to the possession of illegal drugs.

T20 World Cup: Pakistan Break Jinx Vs India In Style

T20 World Cup: Pakistan Break Jinx Vs India In Style

Babar Azam (68) and Mohammad Rizwan (79) made light of a 152-run target to help Pakistan break a World Cup jinx against India.

Love, Longing And Shah Rukh: Growing Up With DDLJ In The Time Of Mandal And Kamandal

Love, Longing And Shah Rukh: Growing Up With DDLJ In The Time Of Mandal And Kamandal

Shah Rukh Khan called himself a peddler of love. That’s better than the pitches selling religion. Love is all we need now.

Advertisement