Privatization of the public sector company Air India is all set. Union Civil Aviation Minister Hardeep Singh Puri has given this information to the House. He told the Rajya Sabha that Air India is impossible to run now. He said that “every day we are losing Rs 15 crore rupees. At the same time, the airline is 20 aircraft short. Therefore, we need to improve the condition and then disinvest.”
This is the first time that the government has clearly stated the privatization of Air India. Earlier, the government was trying to disinvest AI. Many disinvestment efforts have failed. The disinvestment process is inverse of investment. Where the investment is to be invested in a business, an institution or a project, then disinvestment means that the amount has to be withdrawn.
Air India has to pay a loan of Rs 9,000 crore in this financial year. The company had sought government’s help on this, but it was not accepted. The government wants to sell its 76 percent stake in this airline.
Loss due to Pakistan
Hardeep Singh Puri told that Air India has also suffered loss due to restrictions on admission to Pakistani flight. After the suicide bombing on February 14 in Pulwama, Jammu and Kashmir, Pakistani airspace was closed for Indian flights due to increased tensions between India and Pakistan. According to the media report, due to this, Air India has suffered more than Rs 300 crore rupees loss.
Employees can have salary crisis
In a recent report, it is reported that employees of Air India, a company owned by the the government currently in debt, may have to face the crisis in the coming days. According to the report, Air India has no money to pay salaries to employees after October. Government officials have told a media organization that the government had given Sovereign guarantee to Air India for Rs 7,000 crore and the company now has 2,500 crore rupees. These funds will soon be spent in paying salaries for a few months besides paying the dues of oil companies, airport operators and other vendors.
