Disinvestment of Air India


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Disinvestment of Air India

The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 28.06.2017 has given in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries and constitution of Air India Specific Alternative Mechanism.;

To implement the decision of CCEA, appointment of Transaction Adviser, Legal Adviser and Asset Valuer shall be taken up as per terms and conditions and scope of work of Advisers/ Valuer in accordance with the model RFPs suggested by the Department of Investment and Public Asset Management.

The domestic market share of Air India for the FY 2016-17 is 14.2% and in the current FY the domestic Market Share of AI for the month of May 17 is 13.0%. The total debt of Air India Ltd as on 31st March 2017 is Rs 48,876.81 crores (Prov).The Net Loss of Air India(AI) during the last three Financial Years as per audited accounts is as follows:

Year              Net Loss      Financial assistance
                   (Rs. Crores)   provided (Rs. Crores)
2015-16        3836.77          6000
2014-15        5859.91          5780
2013-14        6279.60          3300

To implement the CCEA decision, an Air India Specific Alternative Mechanism has been constituted which will decide the course of further action.

This information was given by the Minister of State for  Civil Aviation Shri Jayant Sinha in written reply to a question in Lok Sabha today.

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Privatization of Airports

Passenger safety and benefit of the airports operated by private/JVC entities are governed as per the Concession Agreement and applicable laws in the country. The regulator authorities i.e. DGCA and Airports Economic Regulatory Authority of India are mandated to monitor the performance of the Airports in this regard.

No airport in the country has been fully privatized. However, Airports Authority of India (AAI) has entrusted the Joint Venture Company (JVC), the Operation Management and Development of Delhi and Mumbai airports under Public Private Partnership (PPP) to have world class airport infrastructure in the country. AAI holds 26% equity in JVCs of Delhi and Mumbai. Presently, the airports being managed under the PPP model includes Delhi, Mumbai, Bengaluru, Cochin and Hyderabad. Introduction of PPP at these airports has led to significant improvement in the infrastructures, rise in collection of revenues and airport service quality, etc. These airports constantly figure among the top five airports in the global ranking in their respective categories.

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Construction of Greenfield Airports

Government of India (GoI), Ministry of Civil Aviation (MoCA) has granted 'in principle' approval for setting up of 18 Greenfield Airports in the country. The list of these airport along with the estimated cost is as under: Mopa in Goa (approx. Rs. 3100 cr), Navi Mumbai (approx. Rs. 16704 cr), Shirdi (approx. Rs. 320.54 cr) and Sindhudurg (approx. Rs. 520 cr) in Maharashtra, Bijapur (approx. Rs. 150 cr), Gulbarga (approx. Rs. 13.78 cr in initial phase), Hasan (approx. Rs. 592 cr) and Shimoga (approx. Rs. 38.91 cr) in Karnataka, Kannur in Kerala (approx. Rs. 1892 cr), Durgapur in West Bengal (approx. Rs. 670 cr), Dabra in Madhya Pradesh (approx. Rs. 200 cr), Pakyong in Sikkim (approx. Rs. 553.53 cr), Karaikal in Puducherry (approx. Rs.170 cr), Kushinagar in Uttar Pradesh (approx. Rs. 448 cr), Dholera in Gujarat (approx. Rs. 1712 cr) and Dagadarthi Mendal, Nellore Dist. (approx. Rs. 293 cr), Bhogapuram in Vizianagaram District near Visakhapatnam (approx. Rs. 2260 cr) and Oravakallu in Kurnool District (approx. Rs. 200 cr), Andhra Pradesh. The timeline for construction of airport projects depends upon many factors such as land acquisition, availability of mandatory clearances, financial closure, etc. by the individual operator.

The construction of airport project depends upon many factors such as land acquisition, availability of mandatory clearances, financial closure, etc. by the individual operator. The State Government of Maharashtra has completed the tendering process and M/s. MIAL is the highest bidder.

During the last three years and the current year, MoCA, GoI has received the following proposals for setting up of Greenfield Airports: Ankleshwar in Gujarat, Bhiwadi (district Alwar) in Rajasthan, Dagadarthi (Nellore), Bhogapuram (Vizianagaram), Tadepalligudem (West Godavari), Oravakallu (Kurnool) and Kuppam (Chittor) in Andhra Pradesh, Chingleput near Chennai, Gwalior and Singrauli in Madhya Pradesh, Hisar in Haryana, Kothagudem (Khammam) in Telangana, Noida International Airport near Jewar, Saifai (Etawah) in Uttar Pradesh, Shivdaspur in Jaipur, Karwar and Chickmagaluru in Karnataka and Rajkot in Gujarat. GoI has granted 'site clearance' approval for setting up of Greenfield Airport at Bhiwadi (district Alwar) in Rajasthan, Kothagudem (Khammam) in Telangana, Rajkot in Gujarat and Noida International Airport near Jewar in Uttar Pradesh and 'in principle' approval for setting up of Dagadarthi (Nellore), Bhogapuram (Vizianagaram) and Oravakallu (Kurnool) in Andhra Pradesh.

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Installation of Gagan System in Aircraft

Government proposes to make it compulsory to install GAGAN navigation system in all aircrafts in the country. In accordance with the provisions of the National Civil Aviation Policy, 2016, it is mandatory for all aircrafts registered in India from 1st January, 2019 to be GPS Augmented Geo Navigation System (GAGAN) enabled.

GAGAN System has been certified for en-route and Approach with Vertical Guidance (APV1) operations by Directorate General of Civil Aviation (DGCA) in December, 2013 and April, 2015 respectively in accordance with essential international standards. GAGAN System is continuously monitored on 24X7 basis to meet all the international standards of accuracy, availability, integrity and continuity requirements.

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Biometric Access Control System at Airports

A project, namely, 'Bio-metric Access Control System at Airports' with a cost of Rs.33.23 crore, has been approved for implementation at 72 airports by Bureau of Civil Aviation Security, the regulatory authority of civil aviation security in India. The objective of the project is to replace the existing system of paper-based Airport Entry Permits(AEPs) and enable bio-metric enabled smart card based access control system for staff & personnel (excluding passengers) requiring entry to the airports.
Disinvestment of Air India Disinvestment of Air India Reviewed by Ajit Kumar on 10:27 AM Rating: 5

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