Process to find buyers for Air India stopped, looking for alternative mechanism: MoS Jayant Sinha

Minister of state(MoS) for civil aviation Jayant Sinha said today that the government is committed to making Air India into a 'competitive airlines', asserting that it has legacy issues but it has begun to make operating profit.

"Currently the process to find buyers for Air India has been stopped, we are looking for an alternative mechanism as per market conditions," Sinha said.

Air India had decided to sell 76 per cent to the highest bidder as part of the strategic stake sale however the national carrier failed to attract any bidders. The potential buyers were reportedly were put off by Air India's demand to ensure the new buyer takes over Rs 24,000 crore debt and over Rs 8,000 crore liability.

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Sinha informed that the government has received bids for Pawan Hans disinvestment process with the transaction advisor in the process of judging the eligibility of the bidders.

"In last the last four years we have cross double-digit growth in Indian aviation, today we have world-class airports," he said. The minister said in the 5 years over 1 lakh crore will be invested for airport capacity expansion.

The MoS said India's 100th airport will soon be built in Pakyong, Sikkim. Sinha said 10,000 complaints were raised by airlines and redressal was done in 96 per cent cases.

The Airport Authority has approved a 400 crore proposal to start a terminal at Agra, he said, adding,"we expect that groundbreaking ceremony to take place by September this year."

Sinha said Jewar Airport near Noida based in Delhi-NCR region will also come up with the groundbreaking ceremony due to take place in December.

"Soon we are going to add another 32 airports in UDAN, 100 aircraft Turboprop have been ordered by players to take advantage in UDAN scheme," he informed.