India open to listing Air India

new delhi — India is open to listing shares of its flag carrier, an official said, as Prime Minister Narendra Modi’s administration struggles to find ways to dispose of the state asset after a botched plan earlier.

By selling shares in an initial public offering, the state can retain control of Air India and also raise cash to fund its operations, a senior government official told reporters in New Delhi, asking not be identified citing rules. A group of ministers formed by the Ministry of Finance is considering other options as well, but is not in favour of giving control to a foreign entity, the official said.

Modi’s most high-profile asset sale didn’t see a single interested bidder by the time a deadline expired on May 31. Air India, with $8 billion in debt and surviving on a taxpayerfunded bailout, hasn’t made money since its 2007 merger with another state-run domestic operator Indian Airlines.

Following the debacle last month, the government is planning to revive the process with new guidelines, including reexamining a clause requiring a minority state stake, Subhash Chandra Garg, a senior official in the Ministry of Finance, said on Monday.

Air India, known for its Maharaja mascot, has some of India’s most lucrative international and domestic landing and parking slots that are key for airlines. — Agencies