Air India disinvestment: Govt to invite initial bids in next few weeks, says official1 min read . Updated: 08 Mar 2018, 02:47 PM IST
Civil aviation secretary R.N. Choubey says the govt is committed to expediting the process of Air India's disinvestment and is likely to invite initial bids (EoIs) from interested parties in the next few weeks
Hyderabad: The government is committed to expediting the process of Air India’s disinvestment and is likely to invite Expressions of Interest (EoIs) from interested parties in the next few weeks, an official said on Thursday.
Speaking here at the inaugural ceremony of the four-day aviation event ‘Wings India 2018’, civil aviation secretary R.N. Choubey said a revised EoI for disinvestment in Pawan Hans is also expected to be floated around the same time.
“Our ministry is presently engaged in the important task of finding buyers for Air India, its subsidiaries and Pawan Hans. We are committed to take it forward very very fast," he said.
“We expect that the EoIs for Air India should come out possibly in the next couple of weeks. A revised EoI for Pawan Hans will also be coming forward around the same time," Choubey said.
Last year in June, the Union Cabinet had approved privatisation of the debt-laden national carrier, which is staying afloat on taxpayers’ money.
A group headed by finance minister Arun Jaitley has been appointed to chalk out the strategy for Air India’s stake sale.
Choubey said India’s domestic air passenger traffic has grown over 20% in the last three years.
However, because of the increasing oil prices, the growth this fiscal is expected to be around 17.5%.
Nevertheless, if oil prices remain below $80 per barrel, the travel demand is expected to grow at a compound annual growth rate (CAGR) of 15% over the next 20 years, he said.
The government’s regional air connectivity scheme ‘Udan’ has further boosted traffic growth in the country, Choubey said.
“As many as 56 new airports have been added into the network in the last two years," he said. Besides, many more airports are expected to be operational in the next six to eight months as by that time the second phase of Udan will also take off, he added.