Lok Sabha Question No. 3793 (UNSTARRED), answered on 2021-03-18
Subject: Disinvestment of Air India
Ministry: CIVIL AVIATION
Asked by: Hemant Tukaram Godse

3793.

## MINISTRY OF CIVIL AVIATION LOK SABHA

## GOVERNMENT OF INDIA

UNSTARRED QUESTION NO. : 3793 (To be answered on the March 2021)

## DISINVESTMENT OF AIR INDIA

## SHRI HEMANT TUKARAM GODSE

## Will the Minister of CIVIL AVIA TION

be pieased to state:-

- (a) whether the Government intends to disinvest Air India and its subsidiaries and ifso; the details thereof and the reasons therefor;
- (c) whethei the Government has taken any steps to improve Air India's operations and financial performance; and
- (b) the present stage Of disinvestment and the steps taken by the Government in this regard;
- (d) if so, the details thereof including the financial assistance given to Air India each of the last five years and its resultant impact on the inancial health Of Air India? during\_

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

() and () NITI Aayog in its recommendations, On Strategic Disinvestment of the Central Public Sector Enterprises in 12,.2017 had given the rationale for:the stated that further financial support in # mature and competitive aviation market would not be the best use Of scarce financial resources 0f the Government The Cabinet Committee 0n Economic Affairs (CCEA): in its meeting held of Air India and its five subsidiaries. May

The Preliminary Information Memorandum (PIM) for inviting Expression of India SATS was issued on 27.01.2020. Due to the COVID-19 pandemic, the Jast Interest in response t% PIM by any group Or entity were to be submitteasto the Transaction Advisor will directly intimate the Qualified Interested Bidders in relation to their qualification and the next steps for the proposed transaction:

Regarding other subsidiaries,, CCEA had given in-principle approval for strategic disinvestment of five subsidiaries of Air India as weli; in its meeting held on 28.06.2017. The PIM inviting EOI for the strategic disinvestment of Air India Air Transport Services Limited was issued on 12.02.2019, which was later withdrawn.

(c) and (d): In order to effectively prepare Air India for disinvestment; the Government prepared & plan to bring operational and financial efficiency in Air Air India and the parameters and milestones as fixed by the Government are monitored and regularly reviewed.

During the last five years; the total equity infusion provided by the government to Air India Ltd is as given below:

| Year    | Equity Infusion by Gol (Rs in Crores)   |
|---------|-----------------------------------------|
| 2020-21 | NIL                                     |
| 2019-20 | 0.01                                    |
| 2018-19 | 3,975                                   |
| 2017-18 | 1,800                                   |
| 2016-17 | 2465.21                                 |

Further, in FY 2020-21, Gol Guarantee support of Rs 964 crore has been provided to Air India which has helped them to raise new working capital loans from Indian banks: Further, Government has also extended the existing Gol Guarantee of Rs 6693 crore for working capital requirements and USD 819 million for refinancing Of aircraft bridge loans. National Small Saving Fund (NSSF) loan of Rs 4500 crore has also been provided to Air India in FY 2020-21.