InvestorQ : When is the divestment of BPCL and SCI and the strategic sale of Air India likely to happen?
Arya Nanda made post

When is the divestment of BPCL and SCI and the strategic sale of Air India likely to happen?

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Deepa Salunkhe answered.
1 year ago
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The government has already confirmed that it may be difficult for the divestment of BPCL, CONCOR and SCI to be completed by this fiscal and may extend beyond March considering that there have been objections from the unions about the valuations of BPCL. That is not going to impact the divestment proceeds this year. Air India may be slightly more complicated although Civil Aviation Minister Hardeep Singh Puri has reassured Air India's employees that the passenger carrier will remain operational till its privatisation process is complete.

The minister had expressed his displeasure over pilots and engineers demanding the government-owned airline to waive off their notice period. He said pilots and engineers are required to run the airline. Pilots had written to Air India management that it was unfair for the Government to keep them bonded with the notice period while they were not being paid on time nor the dues were being cleared. Puri has also underlined that if Air India is not privatised by March 31, 2020, the airline will be shut down as it was incurring a loss of Rs.20 crore per day and its accumulated losses had already crossed Rs.60,000 crore. While government is open to giving majority stake, the ability to monetize the hidden assets of Air India remains the big challenge.

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