Government withdraws AI, IA from disinvestment process

New Delhi: The Indian government has decided to withdraw Air India and Indian Airlines from the disinvestment process in view of the huge investments sought to be made shortly for fleet acquisition.

In addition, the government has also decided to cancel the disinvestment process for 10 more public sector undertakings, the cases of which are being returned to their administrative ministries.

Disinvestment ministry officials say the civil aviation ministry was not in favour of continuing with the process of disinvestment of AI and IA as the fleet acquisition plans running into thousands of crores of rupees are due to be implemented soon. "In such a scenario, it does not make sense to go ahead with privatisation."

According to Disinvestment Minister Arun Shourie, who was briefing newspersons after a meeting of the cabinet committee on disinvestment, in any case "no work is going on" for these two public sector companies. "Hence they have been taken off the list for disinvestment."