Parliamentary panel raises questions about Modi government’s disinvestment strategy

Is disinvestment of profitable public sector enterprises justifiable or not – a Parliamentary panel has raised questions about the Narendra Modi government’s disinvestment strategy.

The query came in a report tabled in Parliament on Monday after the Parliamentary Standing Committee examined the sale of Air India to Tata Sons in which the government “received only a cash component of Rs 2,700 crore” besides the buyer taking over a debt of Rs 15,300 crore.

While Air India was handed over to the Tatas, the government had set up Air India Assets Holding Limited (AIAHL), a Special Purpose Vehicle to disinvest four subsidiaries of the erstwhile national carrier and monetise other assets.