Air India recently sought loans worth over Rs 1,500 crore to meet working capital requirements. Photograph: (Reuters)
'The Cabinet today gave an in-principle approval to the divestment of Air India,' finance minister Arun Jaitley told reporters
The Indian government on Wednesday approved the disinvestment of Air India.
“The Cabinet today gave an in-principle approval to the divestment of Air India,” finance minister Arun Jaitley announced after the Cabinet meeting today.
Jaitley said a group will be set up to finalise the details of disinvestment.
Prime Minister Narendra Modi's administration has been exploring ways to privatise the loss-making national carrier, which was bailed out in 2012 with $5.8 billion of federal funding.
Surviving on taxpayers' money, Air India has been in the red for long and various proposals, including government think tank NITI Aayog's suggestion for complete privatisation, have been made.