Air India will have to shut shop if privatisation flops: Minister Puri

Government is considering a plan to exclude more than half of Air India's $11 billion of debt in the government's latest attempt to lure investors to the struggling carrier, said sources

Air India will have to shut down if a renewed attempt to sell the debt-laden airline fails to find a buyer, the country’s aviation minister said, a year and half after an attempt to sell the high-profile asset flopped.

“The airline will have to close down if it’s not privatised,” Hardeep Singh Puri told the Indian parliament on Wednesday. “Once we invite bids, then we’ll see how many bids will come in.”

A successful sale of Air India is crucial for Prime Minister Narendra Modi to help bridge a widening fiscal deficit exacerbated by dismal tax collections and a $20 billion corporate