Question

The Union Cabinet has given 'in-principle' nod to divest stakes in Air Indiagovernment owned airline. This means the government is willing to shed a substanteportion of its stake and hand over the management of the ailing airline to the pris
sector. Identify the concept being described in the above lines​

Answer 1

Answer:

The Union Cabinet on Wednesday gave its approval, in-principle, for divesting stakes in national airline Air India.

“The Cabinet gave its in-principle approval for Air India disinvestment,” Finance Minister Arun Jaitley said in a press briefing on Wednesday.

A group under Mr. Jaitley has been formed to decide upon the modalities of Air India’s stake sale. “It will now take a decision on the quantum of stake sale and take a call on Air India’s assets, debts and its hotel subsidiary,” Mr. Jaitley said.

Refusing to give a timeline on Air India’s disinvestment, Mr. Jaitley said the group will send a proposal for the Union Cabinet’s final approval. The Finance Minister said Prime Minister Narendra Modi will take a call on the members who will be a part of this group.

While the Central government think-tank NITI Aayog and the Finance Ministry are in favour of an outright sale of the ailing airline, the Civil Aviation Ministry is keen that the government continues to remain a stakeholder in the national carrier after handing over the management to the private sector.

Air India was founded by J.R.D. Tata in 1932 as Tata Airlines which became a public limited company in 1946. Air India was later nationalised in 1953.

The plan to privatise Air India was first mooted by the National Democratic Alliance (NDA) government in 2000. It had then decided to sell 51% stake in erstwhile Indian Airlines and 60% shares in Air India. However, the plan was shelved following protests from the Civil Aviation Ministry.

Privatisation talks were revived earlier this year after the present NDA government said it will not be in a position to bear the over Rs 50,000 crore debt owed by the national carrier to banks and other agencies.

Explanation:

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