Air India declared 'sick' public enterprise, to be shut down

These enterprises are part of a list of 65 sick public-sector undertakings, the Lok Sabha, India's upper house of Parliament, was informed.

By Pti

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Published: Wed 11 Mar 2015, 2:34 PM

Last updated: Thu 25 Jun 2015, 7:23 PM

The Indian government will be shutting down Air India, along with other state-run companies like MTNL, Hindustan Shipyard and three HMT units.

These enterprises are part of a list of 65 sick public-sector undertakings, the Lok Sabha, India's upper house of Parliament, was informed.

Air India and MTNL, once market leaders in aviation and mobile telephony sectors respectively, were declared sick as per the criteria for a PSU to be declared as such, after they incurred losses worth 50 per cent or more of their average net worth during four preceding years.

Air India accumulated losses of Rs 5,388 crore, Rs 5,490 crore and Rs 7,559 crore in years 2013-14, 2012-13 and 2011-12 respectively, according to the figures tabled in the House.


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