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The Emperor's New Clothes

Documents from the Interim Budget show that the government earmarked just Rs 1 lakh for Air India's 10-year Turn Around Plan (TAP) approved in 2012 by UPA-II.
twitter-logoManu Kaushik | Print Edition: March 10, 2019
The Emperor's New Clothes

Is Air India up for sale yet again? Some reports say the government is considering divesting stake in the national carrier and plans to float an Expression Of Interest (EOI) by mid-2019.

Documents from the Interim Budget show that the government earmarked just Rs 1 lakh for Air India's 10-year Turn Around Plan (TAP) approved in 2012 by UPA-II. Instead, a larger share - some Rs  3,900 crore - will go towards Air India Asset Holding Limited (AIAHL), a Special Purpose Vehicle set up to transfer some of Air India's Rs  55,000 crore debt.

Allocating money for an SPV but not the TAP s is probably indicative of the government's line of thought. The Modi-government, however, failed to get rid of the ailing Maharajah last year and one wonders how it will market the sale this time around.

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