Govt expedites asset sales with regional airline on block

0
53


NEW DELHI: The government plans to sell Air India’s regional arm separately, days after Tata Sons emerged as the highest bidder for the parent airline in an auction that did not include the unit, underscoring Prime Minister Narendra Modi’s attempts to divert the state from participation in private sector companies.
The type of market Alliance Air Services It is clearly different from its parent company and therefore the government made the decision to exclude it from the sale process, Tuhin Kanta Pandey, the senior bureaucrat of the investment and public asset management department, told reporters in New Delhi on Tuesday. .
The management expects to complete the sale of Air India in December, with a ground handling unit to separate first, it said.
India aims to raise up to 1.75 lakh crore rupees ($ 23.2 billion) in the year to March 2022 to offset a pandemic-related drop in tax revenue.
The broad proposals include an initial public offering of India’s Life Insurance Corp, which could be the largest in the country, as well as the sale of stakes in companies such as Bharat Petroleum Corp.
Alliance Air operates 18 ATR-72 turboprop aircraft to 47 destinations, connecting places like the capital New Delhi and Mumbai financial center with smaller cities across the country, according to its website.
Market leader IndiGo, operated by InterGlobe Aviation, also operates a fleet of ATR aircraft to connect so-called Tier 2 and Tier 3 regional hubs.
The government is currently working on the Life Insurance Corp valuation, an exercise it aims to complete in December, before the IPO occurs during the first three months of next year, Pandey said Tuesday as well.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here