Mumbai: The Government is currently not considering a public issue of Air India and Pawan Hans Helicopters, Civil Aviation Secretary Ashok Chawla said on Wednesday. "The ministry is not actively looking at it," Chawla told reporters on the sidelines of a conference in New Delhi.
In December, Civil Aviation Minister Praful Patel had said Air India planned to sell up to 15% of its equity in an initial public offering (IPO) to raise funds for expansion. However, a weak stock market coupled with a grim outlook for the sector may have prompted a re-think on the issue.
Chawla said that Air India was likely to seek Rs10-15bn in government funds, partly in the form of loans, as it needs money to run its operations. "Air India is still debating internally and in their board. We expect them to come with some proposal. I think it will come in next two weeks or so," he said.
National Aviation Co., which runs Air India, said on August 12 that it had tied up about US$214mn through loans to part-finance its purchase of eight Boeing aircraft.
Source: http://avindia.blogspot.com
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