Air India has again been put up for sale by government. Government had tried earlier but noone was prepared to take on the 52000 cr liabilities. This time, the govt has shifted 30000 cr to a special purpose vehicle. Reports suggest that Etihad,Tata Group, Hindujas, etc., have shown interest.
Several unions are against selling PSU units. Government has increased welfare state model in India which is requiring lot of amount spending. Most of these PSU units are being absorbed by select Private companies who have close ties with government.
This has led to doubts being raised about these sales. Government pushing the funds thus raised through disinvestment into welfare state models does not affect core revenue distribution from taxes, etc., Government should understand that this is a situation which isnt tenable in the long run if government was spending all its effort in making a few people richer.
