‘Alternative mechanism’ to make AI vibrant: Raju

KOLKATA: Civil aviation minister Ashok Gajapati Raju on Tuesday said the government wants to make Air India vibrant for which plans on an 'alternative mechanism' was being worked out.

The national carrier, entirely funded by government, was making losses and was now in a debt trap due to interest burden.

"We want to make Air India a vibrant entity and not to go the Kingfisher way", Raju told reporters here.

He said the government was working on an 'alternative mechanism' and all options were being explored.

Raju said "Air India's financials are bad. But we want it to continue to be in the skies".

The minister said private carrier Indigo had given expression of interest in Air India's overseas operations, while the Tatas were making only verbal enquiries. "There is nothing in writing from the Tatas, it is only verbal", he said.

Meanwhile, the department of investment and public asset management (DIPAM) of the finance ministry had decided to go for a strategic divestment route in Air India.

Transaction advisors had also been appointed, Raju said.

The minister also informed that the present solar capacity of 90 MW at various airports of the Airport Authority of India was expected to be ramped up to about 200 MW in the next one and a half years.

“The installed capacity of solar (plants) at airports of Airport Authority of India would presently be at 90 megawatt. If the states agree to provide net metering, it is not difficult to get 200-250 mw in the one and a half years' time,” he said.

He said the Central government is pushing for clean energy projects at the various airports.

Meanwhile, Air India will commence Bhubaneswar-bangkok service from December 10, the second direct international flight from here, Chief Minister Naveen Patnaik said on Tuesday.

The Bhubaneswar-bangkok flight will leave the Biju Patnaik International Airport here at 3.45 p m twice a week - Thursdays and Sundays.

“Expansion of international air connectivity will give huge boost to tourism, trade & ties with South East Asian countries,” Patnaik tweeted.

The first direct international flight from Bhubaneswar to Kuala Lumpur started on April 26 this year.