https://www.bbc.com/news/world-asia-india-44326987
Air India sale fails to attract buyers
India has said it will "rethink" its strategy after an offer to buy a controlling stake in national carrier Air India failed to attract any buyers.
"We were looking forward for better participation," Civil Aviation Secretary RN Choubey told reporters after a deadline for expressions of interest ended on Thursday.
The ministry thought the offer of a 76% stake would be "good enough", he added.
But experts say "onerous" government conditions put off potential buyers.
Among the terms of sale was the fact that any potential buyer would have had to take on the airline's 27,000 employees.
The fact that the government would have continued to hold a 24% stake in the airline and expected the buyer to abide by as-yet-unspecified guidelines to safeguard employee interest was also seen as having turned off potential buyers.
The airline has also not turned a profit since 2007, and any buyer would have to take on about $5bn (£3.6bn) of debt.
Mr Choubey said that the government would now rethink its divestment strategy, adding that it would act to minimise "any operational difficulties following the latest developments".
Analysts say the turn of events could deal a blow to Prime Minister Narendra Modi's claims to be a reformist leader.
Air India sale fails to attract buyers
- 1 June 2018
India has said it will "rethink" its strategy after an offer to buy a controlling stake in national carrier Air India failed to attract any buyers.
"We were looking forward for better participation," Civil Aviation Secretary RN Choubey told reporters after a deadline for expressions of interest ended on Thursday.
The ministry thought the offer of a 76% stake would be "good enough", he added.
But experts say "onerous" government conditions put off potential buyers.
Among the terms of sale was the fact that any potential buyer would have had to take on the airline's 27,000 employees.
The fact that the government would have continued to hold a 24% stake in the airline and expected the buyer to abide by as-yet-unspecified guidelines to safeguard employee interest was also seen as having turned off potential buyers.
The airline has also not turned a profit since 2007, and any buyer would have to take on about $5bn (£3.6bn) of debt.
Mr Choubey said that the government would now rethink its divestment strategy, adding that it would act to minimise "any operational difficulties following the latest developments".
Analysts say the turn of events could deal a blow to Prime Minister Narendra Modi's claims to be a reformist leader.
