‘Centre to invite initial bids for Air India in a couple of weeks’

‘Centre to invite initial bids for Air India in a couple of weeks’

Context:

• Civil Aviation Secretary R.N. Choubey recently said the Ministry was engaged in the “important task” of finding buyers for Air India and its subsidiaries as well as for Pawan Hans.

Introduction:

• EoI would be the first such for Air India, while for Pawan Hans it would be a revised document.
• The announcement came in the backdrop of the government paving the way for a stake sale in the debt-laden airline last year.
• The Union Cabinet had in-principle approved divestment in Air India and the government followed it up by permitting foreign airlines to invest up to 49%, under the approval route, subject to certain conditions
• The Ministry is also in the process of moving amendments to the Act governing the Airports Authority of India (AAI) in the current session of the Parliament for better use of the entity’s land parcels.

‘Keeping pace’

• The focus is to leverage and monetise AAI’s balance sheet and facilitate a manifold increase in its spending, from the existing Rs. 3,000 crore annually.
• The AAI proposes to spend Rs. 18,000 crore over four years on upgrading of airports.
• Underscoring the significance of adequate resources so the growth of airports does not lag the growth of the aviation sector.