Initial bids for Air India stake sale in a couple of weeks: Civil Aviation Secretary

Last year, the Cabinet Committee on Economic Affairs (CCEA) gave its in-principle nod for the strategic disinvestment of the airline. Government has yet to decide on what to do with the carrier's debt burden of $8.5 billion.

The Parliamentary Standing Committee on Transport, Tourism and Culture had concluded that the government should review its decision to privatise or disinvest Air India and explore the possibility of "an alternative to disinvestment of our national carrier which is our national pride".

The draft report had suggested the government should revisit its decision to privatise the national carrier at the end of the 10-year turnaround plan in 2022.

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However, aviation think tank CAPA said that postponing disinvestment of Air India by five years will further erode its value. The statement was made in response to a draft report by a Parliamentary panel recommending the government review its decision on the airline's stake sale.

Under a turnaround plan approved by the previous UPA regime, Air India is to receive up to Rs. 30,231 crore from the government subject to meeting certain performance thresholds.