Home Minister amit shah will head a reconstituted group of ministers (GoM) on Air india disinvestment. Transport Minister Nitin Gadkari has been dropped from the panel. The panel, which is to work out the modalities for sale of Air india, will now have four ministers, amit shah, Finance Minister Nirmala Sitharaman, Commerce and Railway Minister Piyush Goyal and Civil Aviation Minister Hardeep Singh Puri.
The reasons of bid failures cited include the government retaining 24 per cent stake and corresponding rights, high debt, volatile crude oil prices, fluctuations in exchange rate, changes in macro environment and restriction on bidding by individuals. Now, the Department of Investment and Public Asset Management (DIPAM) has already prepared a fresh proposal for Air india sale, incorporating issues like crude oil prices and exchange rate volatility, and other issues flagged by EY last year.
The government, sources said, could this time sell its entire 100 per cent stake in Air india as it aims to conclude the sale process by December 2019.