Rs 3,224 cr for civil aviation, Air India sale by March ’22

New Delhi, February 1

Announcing that the disinvestment process of Air India would be completed during 2021-22, Finance Minister Nirmala Sitharaman in her Budget speech said she had allocated Rs 2,268 crore for a special purpose vehicle (SPV) for financial restructuring of the debt-laden national carrier.

As part of budgetary support to the Ministry of Civil Aviation for 2021-22, the FM has allocated Rs 3,224 crore, which is 22 per cent lower than Rs 4,131 crore that was allocated for the current fiscal.

Multiple bids

  • Multiple entities have already submitted expression of interests to buy the debt-ridden Air India
  • The government is likely to reveal the names of qualified bidders soon
  • Air India Asset Holding Ltd has been set up as part of financial restructuring of the debt-ridden national carrier

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 FM also mentioned about disinvestment of Pawan Hans, the state-owned helicopter company, and noted that the process would be completed in 2021-22.

For the ambitious regional connectivity scheme Udan, the FM has allocated Rs 600 crore, which 14.28 per cent lower than the current financial year. Under the scheme, financial incentives from the Centre, state governments and airport operators are extended to select airlines to encourage operations from un-served and under-served locations and keep airfares affordable. — TNS

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