DNA Money Edit: Will the Centre absorb Air India's losses to lure private investors

The Maharaja is in the news again. Even as the debate over the stake sale in the airline is still being debated, the senior officials in the government indicate that it will be taking a decision in this regard in the next few months. The government is considering bringing strategic partner or divest stakes, so that the funds which was to be used for running the airline could instead be used for more priority sectors.

Days after Union Finance minister Arun Jaitley showed his inclination for disinvestment of Air India , Civil aviation minister Ashok Gajapathi Raju ON Tuesday during a media interaction reiterated that all courses of action are being examined. "We have not closed any option," he said.

The second issue on which the national carrier is in spot light is for the reason which led to its over Rs 52,000 crore debt. The country's premier investigating agency, Central Bureau of Investigation (CBI) has filed FIR in three separate cases in connection with the alleged irregularities in the purchase of 111 aircraft at cost of about Rs 70,000 crore. The acquisition allegedly caused a financial loss to the "already stressed" national carrier, the investigating agency said. CBI will also be investigating whether profitable routes were 'handed out' to private rivals, resulting in losses to the carrier. The two airlines- Air India and Indian airlines- were later merged in 2007, creating chaos in synchronization of huge assets and employees.

Now the question is whether the government will absorb some of the debt for any private player to invest and turn around the company.