India at 75: What's the way ahead for govt on privatisation, asset sales

While the govt has secured a big win by privatising Air India, it is still far from its initial goal of privatising majority of PSUs

On October 8, 2021, after two previous failed attempts, the centre finally announced the sale of Air India. 68 years after the sovereign had nationalised the Maharaja, it would be sold to its original owner, Tata Sons.

This was good news for the beleaguered loss-making carrier, which can now be managed more efficiently, and for the exchequer, which was funding it for decades.

The sale of Air India to the Tatas also provided a big boost to the Narendra Modi administration’s pro-reforms credentials. It was, after all, the first privatisation of a state-owned company in 17 years.

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