{"id":35968,"date":"2018-11-01T12:45:23","date_gmt":"2018-11-01T07:15:23","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35968"},"modified":"2018-11-01T12:45:23","modified_gmt":"2018-11-01T07:15:23","slug":"panel-seeks-details-on-ai-divestment","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/panel-seeks-details-on-ai-divestment\/","title":{"rendered":"Panel seeks details on AI divestment\u00a0:"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/panel-seeks-details-on-ai-divestment\/article19374096.ece\"><span style=\"font-weight: 400;\">Panel seeks details on AI divestment\u00a0<\/span><\/a><span style=\"font-weight: 400;\">: <\/span><\/p>\n<p><b>Context :<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A Parliamentary Standing Committee has sought details from the government on its strategic disinvestment plans for national Air India.<\/span><\/p>\n<p><b>Introduction :<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The department related Parliamentary Standing Committee on Transport, Tourism and Culture, chaired by Rajya Sabha Member of Parliament Mukul Roy, is set to meet the Central government officials today.<\/span><\/p>\n<p><b>Key points :<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on June 28 gave its in-principle approval for the strategic disinvestment of Air India and subsidies.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The CCEA also set up a group of minister under Finance Minister Arun Jaitley to examine the modalities of the national carrier\u2019s stake sale. The Ministerial group will decide upon the \u201ctreatment of unsustainable debt of Air India, hiving off of certain assets to shell company, de-merger and strategic disinvestment of three profit-making subsidiaries, quantum of disinvestment and the universe of bidder.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Union Cabinet gave its nod for Air India\u2019s strategic disinvestment, India\u2019s largest low-cost carrier IndiGo expressed interest in acquiring the flag carrier\u2019s airline business, mainly related to its international operations.<\/span><\/li>\n<\/ul>\n<p><b>Background :<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The decision to divest to stake in Air India was based on government think-tank NITI Aayog\u2019s recommendations may this year.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The Aayog had given the rationale for the disinvestment of Air India and has attributed the main reason as fragile finances of the company. Air India has been incurring continuous losses and has huge accumulated losses.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">NITI Aayog in its report on Air India says that further support to an unviable non-priority company in matured and competitive aviation sector would not be the best use of scarce financial resources of the Government.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Air India\u2019s market share on domestic routes had declined to 14.2% in 2016-17, from 17.9% in 2014-15.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Air India had accumulated total debt of Rs 48,876 crore till March 31, 2017.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The carrier has been reporting continuous losses due to its high debt with its net loss at Rs 3,728 crore in 2016-17, compared with Rs 3,836 crore in 2015-16.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Air India, which has a debt burden of more than Rs 52,000 crore, is staying afloat on taxpayer\u2019s money.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The previous UPA government had extended bailout package worth little over Rs 30,000 crore to the national carrier for a period of 10 year starting from 2012.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Panel seeks details on AI divestment\u00a0: Context : A Parliamentary Standing Committee has sought details from the government on its strategic disinvestment plans for national Air India. Introduction : The department related Parliamentary Standing Committee on Transport, Tourism and Culture, chaired by Rajya Sabha Member of Parliament Mukul Roy, is set to meet the Central&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/panel-seeks-details-on-ai-divestment\/\">Continue reading <span class=\"screen-reader-text\">Panel seeks details on AI divestment\u00a0:<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35968","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700107807},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35968"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35968\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}