Niti Aayog has said that debt level of Air India is unsustainable and it should be privatized. The Vice Chairman of Niti Aayog, Arvind Panagariya said this in an interview to a TV news channel, yesterday and recommended complete privatisation of the airline. He said government will decide in next six months on the airline’s future course.
Mr. Panagariya said that the debt is already about 52,000 crore rupees and 4,000 crore rupees debt is being added every year. Air India is surviving on 30,000 crore rupees bailout package extended by the UPA government.
Recently, Finance Minister Arun Jaitley had said the aviation ministry has to explore all possibilities “as to how the privatisation of Air India can be done”.