Cabinet to consider proposal for outright sale of Air India

The Union Cabinet will soon decide the fate of Air India by deliberating on 3 options to divest the govt’s majority stake and consider the creation of a special purpose vehicle (SPV) to get rid of a major portion of its more than INR500b debt. The 3 options on the table are a full 100% sell-off, a 74% stake sale or retaining a 49% share in the airline, as per the note prepared by the Department of Investment and Public Asset Management (DIPAM) for the Cabinet's consideration, officials aware of the development said. While the Central govt think-tank NITI Aayog and the Finance Ministry are in favour of an outright sale of the ailing airline, the Civil Aviation Ministry is keen that the govt continues to remain a stakeholder in the carrier after handing over the management to the private sector. <br/>