The government on the mode 'Wait and watch & # 39; in the sale of Air India Stake: Nitin Gadkari

The government has decided to wait and monitor the next three months before seeking the disengagement of the national airline Air India because of the prevailing market conditions and particularly high fuel prices, said today. Minister of Foreign Affairs Nitin Gadkari.

The proposed equity sale by the government in Air India failed to attract a first bidder when the deadline for the bidding process ended May 31st.

"The market situation is not suitable for the Air India divestment, and we maintain a policy of waiting and monitoring for the next three to four months," says Gadkari, holder of several portfolios such as road, transportation, highways, maritime and marine resources, told here.

The minister said that given the high fuel prices at the present time, the viability of the move will be judged before going ahead with the disinvestment process.

As part of Air India's divestment plans, the government was to sell 76% of the capital of the national airline with the complete divestiture of Air India Express and a 50% stake. % in Air India SATS Airport Services Pvt Ltd – – a 50/50 joint venture with SATS, based in Singapore.

Earlier, State Minister for Civil Aviation, Jayant Sinha, said the government was determined to strategically disinvest Air India. "What are the modalities, what are the circumstances, we must follow and evaluate as and when," he said.

By the end of March 2017, the carrier had a debt burden of about 48,877 crores. Of the total amount, Rs 17,360 crore was related to aircraft and Rs 31,517 crore related to working capital loans.

In May, the market share of Air India was 12.8%.