The Government would ensure Air India is purchased by an Indian entity: Hardeep Puri
Civil Minister Hardeep Singh Puri on Thursday said the government was committed to “strategic disinvestment”.
The’unsustainable debt burden’ considered the reason for Air India’s downfall and hence the government committed to strategic disinvestment of Air India.
As far as disinvestment of Air India concerned, Civil Aviation Minister Hardeep Puri said as soon as the government gets the provisional figures and the alternate mechanism for the disinvestment of Air India in substantive motion. Therefore the process of strategic disinvestment started.
“We believe the government’s scarce resources utilized in the other development scheme. And this is area privatization and disinvestment will work,” he said replying supplementaries in the Lok Sabha during the question hour.
Puri said that the privatization of Air India was for the benefit of people. The government will do its best to ensure that the company purchased by an Indian entity.
“It is not the government which has failed to attract passengers. Air India, in fact, is a first-class asset. Moreover, It has 125 planes, half of them are flying in 40 international directions and 80 in domestic destinations. Also, It is doing extremely well. The problem is that it has taken an unsustainable debt burden. It is servicing of that debt burden which is a problem,” he said.
The minister said the government committed to the strategic disinvestment of Air India as NITI Aayog. Thus, Its recommendations had given the rationale for the disinvestment of Air India and have referred to the fragile finances of the company, among various other reasons.
“It is for the benefit of the Indian citizens that the government has decided to privatize it,” he said.
He said the government will do its best. To ensure that An Indian Entity purchases it.
Moreover, To a question on the decline of the domestic civil aviation market, Puri said that the domestic civil aviation market declining.
“In fact, it has seen a steady annual growth of 17 percent. Therefore contrary to the speculation, the number of flights haven’t gone down either,” he said.
He, however, said the high cost of Aviation Turbine Fuel (ATF), the global economic slowdown, low yields. Due to the intense competition are some reasons that have contributed to the widening gap between revenue and expenses in the airline industry.
“Over the years, the operational costs for airlines have gone up mainly. Due to the increase in fuel prices and the depreciation of Rupee,” he said in a written reply.
For more latest news click here
Aerial Photography or survey in Mumbai
Aerial Photography Services In Delhi
Superb Electromagnetic
AAI Chairman Announces Digi Yatra Implementation at Kolkata, Pune, and Vijayawada Airports
Zero G Shoot
About Author
