Govt needs to infuse Rs 3,000 cr in Air India as sale to get delayed: CAPA
The government’s plan to privatise flag carrier Air India will be further delayed and it will have to infuse up to Rs 3,000 crore to ensure continuity of operations till the sale process gets over, the Centre for Pacific Aviation (CAPA) said on Wednesday.
The government has already extended the date of submission for expression of interest to April 30 from March 17 due to the ongoing coronavirus outbreak.
In January, the government restarted the divestment process of the carrier and invited bids for selling its 100 per cent stake in both Air India and its low-cost international budget arm Air India Express besides entire 50 per cent holding in ground-handling joint venture AI-SATS.
“The privatisation process for Air India will be further delayed. The EoI submission date has already been pushed back by six weeks,” CAPA said in its latest report — Impact of COVID-19 on Indian Aviation — released on Wednesday.
