Home Minister Amit Shah has been appointed chairman of the board that is planning to sell its stake in Air India. Road Transport Minister Nitin Gadkari has been released from the committee.
A group of five ministers, headed by former finance minister Arun Jaitley, has already been formed to devise plans to sell shares of Air India, which is in huge loss. The committee includes Ashok Gajapati Raju, Suresh Prabhu, Piyush Goyal and Nitin Gadkari. On the advice of the committee, Air India arranged to sell 76 per cent of its shares in May last year. But no company is interested in buying the stock.
With the Modi-led government now in power, the attempt to sell its stake in Air India has intensified. The group of 5 is said to have dissolved and a group of 4 is said to have formed. The group, headed by Amit Shah, has reportedly included Nirmala Sitharaman, Piyush Goyal and Hardeep Singh Puri. The Central Government plans to sell Air India by the end of this year.
This group of 4 memebers are keen in selling the shares the share to Private companies.
The Department of Investment and Public Asset Management (DIPAM) has already prepared a fresh proposal for Air India sale, incorporating issues like crude oil prices and exchange rate volatility, and other issues flagged by EY last year.
The government, the sources said, could this time around sell its entire 100 per cent stake in Air India as it aims to conclude the sale process by December 2019. However, a final call on the quantum of stake to be offered to investors and the right time for floating the expression of interest would be decided by the newly constituted AISAM, a source said.
The AISAM would be meeting soon, most probably after the conclusion of the ongoing Parliament session on July 26. The government in Budget for 2019-20 has set a record high disinvestment target of Rs 1.05 lakh crore, up from Rs 85,000 crore raised last fiscal.