New Delhi: Air India sale will give a boost to India's privatisation drive, the Economic Survey said on Monday, as it suggested redefining the public sector role in business enterprises to encourage private participation in all sectors.
The government earlier this month handed over ownership rights in national carrier Air India to Tata Group for Rs 18,000 crore. The amount includes the takeover of the debt burden of Rs 15,300 crore and another Rs 2,700 crore in cash.
"This progress on privatisation of Air India is particularly important, not only in terms of garnering disinvestment proceeds but also for boosting the privatisation drive," the Survey said. This is the first privatisation in 20 years and will pave the way for the sale of more CPSEs, which are lined up for sale — BPCL, Shipping Corporation, Pawan Hans, IDBI Bank, Concor, BEM and RINL.
Since 2016, the government has given in-principle' approval for strategic disinvestment of 35 CPSEs and/or subsidiaries/ units/ joint ventures of CPSEs and IDBI Bank.
"In order to realise the mission of New, Self-reliant India, there was a need to redefine public sector participation in business enterprises and to encourage private sector participation in all sectors, the Survey said.
The government had last year approved a policy of strategic disinvestment of public sector enterprises that will provide a clear roadmap for disinvestment in all non-strategic and strategic sectors.