Air India stake sale will be 'very, very difficult' says Arvind Panagariya

June 3, 2017

New Delhi, Jun 3: Selling stake in Air India will be "very, very difficult" with its debt burden of Rs 52,000 crore and the government has to decide if there should be partial or full write-off of debt, NITI Aayog Vice Chairman Arvind Panagariya said on Friday.

Panagariya

Loss-making Air India, surviving on taxpayers' money, is facing tough business conditions amid stiff competition.

Stressing that the government has to first decide whether the national airline should be privatised or not, Panagariya said various issues need to be discussed.

"Assuming that the decision is made to privatise (Air India), then the issue comes what is the universe of potential buyers... only the national buyers or will we allow foreign entities also to bid for it," he said at a press meet here.

Panagariya noted that another issue is if the government should retain some stake in it, however small, "because there is the issue that it (Air India) is a national carrier and therefore, we should maintain that".

About the airline's debt burden, the NITI Aayog Vice Chairman said the last number he heard was Rs 52,000 crore.

"That's a very large number... selling it (Air India) with the existing debt is going to be very very difficult even say, it is open to both domestic and foreign buyers".

"Something will need to be done on debt issue also. The question largely is whether the government of India writes off the entire debt or some part of it. All this needs to be discussed," he said.

NITI Aayog has given its recommendations on making Air India strong and viable and those are being looked into by the Civil Aviation Ministry.

"NITI Aayog has given its suggestion to the Civil Aviation Ministry... Civil Aviation Ministry has to explore all the possibilities as to how the privatisation of Air India can be done," Finance Minister Arun Jaitley said on Thursday.

On Thursday, Jaitley and his Civil Aviation counterpart, Ashok Gajapathi Raju, discussed the future course for debt- ridden Air India and senior officials had indicated that a decision on privatisation would be taken within three months.

Air India has been in the red since the merger with Indian Airlines in 2007. However, it posted an operational profit of Rs 105 crore on account of low fuel prices and increased passenger numbers in 2015-16.

Staying afloat on little over Rs 30,000 crore bailout package extended by the previous UPA regime, Air India is in discussions with lenders on ways to restructure the loans.

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Agencies
June 16,2024

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Union Education Minister Dharmendra Pradhan on Sunday said that some irregularities have come to light regarding the NEET examinations while speaking to news agency ANI.

Pradhan told the publication, "On the recommendations of Supreme Court, the order has been given for re-test of 1,563 candidates," further adding, "Some irregularities have come to light in two places. I assure students and parents that the government has taken this seriously."

Pradhan admitted in the interview that a lot of improvement is required in the National Testing Agency (NTA), the autonomous body tasked with conducting nationwide competitive examinations.

"Even if the big officials of the NTA are found guilty, they will not be spared," Pradhan said while adding, "The government is concerned about this, no culprit will be spared, they will get the harshest punishment."

The National Eligibility-cum-Entrance Test (UG), or NEET, was held on May 5 across 4,750 centres with around 24 lakh candidates appearing for it. The results were expected to be declared on June 14 but were announced on June 4 -- the day the general election results were announced -- apparently because the evaluation of the answer sheets was completed earlier.

There have been allegations of question paper leaks in states like Bihar and other irregularities in the pan-India exam.

The Centre and the National Testing Agency on Thursday told the Supreme Court they had cancelled the grace marks given to 1,563 candidates who took the examination for admission to MBBS and other such courses.

They will have the option to either take a re-test or forgo the compensatory marks awarded to them for loss of time, the Centre said.

The Congress had on Friday questioned Prime Minister Narendra Modi's "silence" on the matter and asserted that only a Supreme Court-monitored forensic probe could safeguard the future of lakhs of young students.

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News Network
June 14,2024

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An uneasy silence hung over the import cargo terminal of the Kochi airport on Friday morning as authorities made arrangements to receive the bodies Indians who lost their lives in a tragic building fire in Kuwait two days ago. Ambulances were stationed at the terminal to carry the victims' bodies to their homes.

The special flight carrying the bodies of 23 Keralites, seven Tamil Nadu natives, and one Karnataka resident is expected to reach the Cochin International Airport around 10.30 am, Deputy Inspector General, Ernakulam Range, Putta Vimaladitya told the media.

The mortal remains will be received in Kochi by their respective state governments and taken to their homes. The flight will then leave for Delhi with the bodies of the victims from other states.

The blaze in the seven-storey building that housed 196 migrant workers in Mangaf, south of Kuwait City, on Wednesday killed 49 people and injured around 50 others. A preliminary probe has indicated glaring lapses – there were around two dozen gas cylinders on the ground floor of the building; inflammable materials were used as partitions to separate the workers in the cramped rooms; the doors to the rooftop were locked, etc.

24 of the Indian victims are from Kerala, 7 from Tamil Nadu, 4 from Uttar Pradesh, 3 from Andhra Pradesh and 2 each from Bihar and Odisha. The victims also include 1 person each from Jharkhand, Karnataka, Maharashtra, Punjab and West Bengal.

The Karnataka man who died in mishap has been identified as Vijaykumar Prasanna from Alanda in Kalaburgi district.

Out of 24 Keralites who lost their lives, 23 have been identified. Of these, five are from Pathanamthitta district, four from Kollam, three each from Kottayam and Kannur, two each from Thiruvananthapuram, Kasaragod and Malappuram and one each from Alappuzha and Thrissur districts.

Some of the bodies that are yet to be identified will be subjected to DNA test and the process will take two weeks to complete, said NORKA Principal Secretary Dr K Vasuki.

She said the immediate priority is to bring back the bodies, for which the Union government has arranged a special aircraft.

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News Network
June 13,2024

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New Delhi: As he embarks on a visit to Italy to attend an Outreach session at the G7 summit, Prime Minister Narendra Modi on Thursday said its focus would be on artificial intelligence, energy, Africa, and the Mediterranean.

Modi said this in a departure statement before leaving for the European nation in his first foreign trip after becoming prime minister for a third term.

The prime minister said issues crucial for the Global South will also be deliberated upon at the Outreach session.

The G7 summit, to be held in the luxury resort of Borgo Egnazia in Italy's Apulia region from June 13 to 15, is expected to be dominated by the raging war in Ukraine and the conflict in Gaza.

"At the invitation of Prime Minister Giorgia Meloni, I am travelling to Apulia region in Italy to participate in the G7 Outreach summit on June 14," Modi said.

The prime minister said he was glad that his first visit in the third consecutive term is to Italy for the G-7 Summit.

"During the discussions at the Outreach session, the focus will be on artificial intelligence, energy, Africa, and the Mediterranean," Modi said.

"It will be an opportunity to bring greater synergy between the outcomes of the G20 Summit held under India's Presidency and the forthcoming G7 Summit, and deliberate on issues which are crucial for the Global South," he said.

Modi will have a bilateral meeting with Italian Prime Minister Meloni.

"Prime Minister Meloni's two visits to India last year were instrumental in infusing momentum and depth in our bilateral agenda," he said.

"We remain committed to consolidating the India-Italy strategic partnership, and bolstering cooperation in the Indo-Pacific and the Mediterranean regions," he said.

The prime minister is likely to hold a number of bilateral meetings on the sidelines of the summit. "I am also looking forward to meeting other leaders participating in the Summit," he said.

The G7 comprises the US, the UK, France, Italy, Germany, Canada and Japan.

Italy is holding the current presidency of the G7 (Group of Seven) and is hosting the summit in that capacity.

A key focus of the Italian presidency has been to defend the rules-based international system.

According to Italy, Russia's war of aggression on Ukraine has undermined its principles and triggered growing instability, with multiple crises unfolding worldwide. The G7 will give equal importance to the conflict in the Middle East, with its consequences for the global agenda, it says.

The bloc expanded into the G8 between 1997 and 2013, with the inclusion of Russia. However, Russia's participation was suspended in 2014 following its annexation of Crimea.

In line with the grouping's tradition, representatives of a number of countries and international organisations are invited to the summit by the host nation that holds the chair.

Besides India, Italy has invited leaders from 11 developing countries in Africa, South America and the Indo-Pacific region to attend the summit. Though the European Union is not a member of the G7, it attends the annual summit.

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