Privatization of Government Companies: The Central Government has started the process of privatization of two subsidiaries – AIASL and AIESL, which were separated from Air India.
Privatization of Government Companies: The Narendra Modi government at the Center has started the process of privatization of two subsidiaries – AIASL and AIESL – which were separated from Air India. An official related to the department has given this information. “The Department of Investment and Public Asset Management (DIPAM) has started meetings and road shows to ascertain the interest of investors in AIASL and AIESL,” the official said. We will soon invite EOIs from interested bidders.
Air India sales
Significantly, the government sold the debt-ridden Air India to the Tata group in October last year for Rs 18,000 crore. In this way, Air India was completely handed over to Tata in January. However, four of Air India’s subsidiaries – Air India Airport Services Limited (AIASL), Air India Engineering Services Limited (AIESL), Alliance Air Aviation Limited (AAAL) and Hotel Corporation of India Limited (HCI) – were not part of the deal. .
The government gave this information
These subsidiaries and non-core assets worth around Rs 15,000 crore have been transferred to an SPV – Air India Assets Holding Limited (AIAHL). The government then said that these subsidiaries and non-core assets would be sold later. In this sequence, DIPAM organized investor meetings for the privatization of AIASL and AIESL.
opposition to privatization
The government is standing on its side amid the protests against privatization. Banks are also being privatized under the privatization campaign, under which two banks have also been shortlisted.