Niti Aayog’s chairman, Amitabh Kant said today that Air India should be privatized as its debt level is “simply not sustainable” and government action on the airline’s future course is likely within six months. He wants the government to take the tough call in this year itself as six months are still remaining after this month.
The chairman also pointed that earlier successive governments recognized problems with the airline but failed to act on them. While he is confident that Prime Minister Narendra Modi is bolder and more decisive so he will take the right decision in everybody’s favor.
The government is looking at various options, including privatization, to revive the loss-making national carrier while Tata Group is believed to be interested in buying the stake in Air India.
Air India is currently running a debt of ₹52,000 crores while they are adding ₹4,000 crores of debt every year which is not tolerable. Air India is surviving on Rs 30,000 crore bailout package extended by the previous UPA government.