The Cabinet has given its in-principle approval for the disinvestment of debt -ridden of public carrier Air India.
Finance Minister Arun Jaitley said,a group will be set up to finalise modalities and details of disinvestment including the quantum of stake sale.
The airline has a debt of more than 52,000 crore rupees and is surviving on a 30,000 crore rupees bailout package extended by the previous UPA government in 2012.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has given 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).
The five points would be considered mainly, treatment of unsustainable debt of Air India; hiving 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.