New Delhi, December 31: Amid the speculation of IndiGo and Abu Dhabi-based Etihad Airways showing interest in government-run airliner Air India, Union Civil Aviation Minister Hardeep Singh Puri on Tuesday said that Air India would be privatised, as Centre has no other option. He was also of the opinion that the Centre would not regulate the air fare as they are market driven.

Speaking to the media on government's plan to privatise Air India, Puri said, as quoted by news agency ANI, "I had said earlier also, for us it is not an option, Air India has to be privatised." However, the Union Minister said that his ministry cannot confirm the deadline as of now. He said, "We do not become a slave to or victim of certain deadlines, we are doing it seriously. We are trying to do it as quickly as possible." Air India Refuses to Issue Tickets to Personnel of Government Agencies That Owe Money to National Carrier, Defaulter List Includes CBI, ED, IB & Other Premier Agencies.

Here's ANI tweet:

The Union Minister also stated that Air India has now gathered debt which could be described as unsustainable. According to the government estimate, Air India has a debt of around Rs 57,500 crore.  A report -- published in the Economic Times -- pointed out that the Union government will pay Rs 22,000 crore of AI's dues to vendors -- airports and oil companies -- and may waive Rs 15,500 crore working capital debt before putting the airline for sale. However, AI would still be left with a loan burden of about Rs 20,000 crore.

Apart for the debt issue of Air India, reports state that the interested buyers met the senior government official to discuss about the bidding. It is to be known that IndiGo can bid for 100 percent in AIR, while Etihad can only bid for 49 percent in AI -- under the current Foreign Direct Investment (FDI) norms. However, under the National Investment and Infrastructure Fund, Etihad with Abu Dhabi Investment Authority (ADIA) can bid for 100 percent stake in AI.

(The above story first appeared on LatestLY on Dec 31, 2019 02:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).