The Narendra Modi led government of India is not leaving any stone unturned in their most recent attempt to sell Air India off. Air India is their national carrier and the experts have a feeling that they may be acting a little more hastily than is required.
The government on the 7th of January had kick-started formally the process of disinvestment by making a decision to invite the EOIs for the carrier that has been debt laden by the end of January as per the local media reports.
Air India’s privatization is among the top-most priorities for the government of India which has been battling a shortfall in revenue after the cut of corporate tax in the month of October last year and a slowdown which has been severely affecting the economy.
The sale too is assuming significance specially because the proceeds of this divestment in this particular financial year are going to be falling short of the ambitious target that the government has set at $15 billion or Rs. 1.05 lakh crore.
Apart from that, the airlines is flying currently on a decade long bailout package which had been announced in the year 2012 of Rs30,231 crore.
The experts feel that the reason behind the desperation of the government is that the funds which had been infused in the year 2012 have begun to now exhaust and any more delays would imply a further infusion of funds.
The experts feel that it would be advisable to hold the process off in order to secure a sale that is successful.
They feel that they should wait until the situation of the rupee against dollar gets better and the oil prices stabilize.