Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
From UPSC perspective, the following things are important:
Prelims level: Not much
Mains level: Reason behind the divestment of the Air India.
Important statement by the Civil Aviation Ministry
- The Ministry is engaged in the “important task” of finding buyers for Air India and its subsidiaries as well as for Pawan Hans
- The officials(of the ministry) are expecting the expressions of interest to be issued within a couple of weeks
- The announcement came in the backdrop of the government paving the way for a stake sale in the debt-laden airline last year
- The Union Cabinet had in-principle approved divestment in Air India and the government followed it up by permitting foreign airlines to invest up to 49%, under the approval route, subject to certain conditions
Reason behind the divestment of the Air India
- With divestment, the focus is to leverage and monetise AAI’s balance sheet and facilitate a manifold increase in its spend, from the existing Rs. 3,000 crore annually
- The AAI proposes to spend Rs. 18,000 crore over four years on upgrading of airports