Finance Minister Nirmala Sitharaman has revealed that the government is aiming to complete the sale of Air India and Bharat Petroleum Corporation by March 2020. The disposal of these two state-run entities is a strategic part of the government’s plan to raise Rs 1 crore in this financial year. According to the Minister, there are lots of interest from the investors for Air India, which wasn’t evident last year. This is the second attempt by the government to privatize Air India. In 2018, the government announced for the sale of 76% stake in Air India, but it saw a weak demand from the investors.
Prospective investors are in queue
The government has been conducting discussions with various trade unions within Air India sale March 2020. The government has assured the job security for the employees after privatization. The airline has around 20,000 employees and has a 13% share in the market. The talks about Air India's sale have been going on for a long time now.
GST curbed tax leakages
Talking to the news wing Times of India, Minister Nirmala Sitharaman also said that the government is right on track towards solving the economic slowdown of the nation. Goods and Services Tax (GST), introduced last year, has helped to curb the leakages in few sectors, bringing enhancements in tax collection. Many business tycoons are planning new investment, boosting the economy as a whole.
Sitharaman further added that the judicial verdict on Essar Steel case had revived the strength of IBC law and it will bring considerable differences in the balance sheets of the banks in the next quarter. Minister said that the consumer sentiments are revived, which was evident at the outreach program during festival season. There was a demand for Rs 1.8 lakh crore loans from banks at the program.
