Friday, June 16, 2017

Air India divestment: Govt may write off Rs 30,000 crore debt

Mumbai: The government is all set to write off Rs 30,000 crore that it extended to the ailing national carrier Air India as a bailout package, according to a report in The Financial Express. The Centre has set a target of raising Rs 72,000 crore from strategic sale of ailing public sector undertakings.

The report adds that Union Cabinet led by Prime Minister Narendra Modi would soon take up a cabinet note in this regard. It is also expected that banks would also go for a haircut that would reduce total cost of divestment to the government.

"While the write-off is of the carrier’s liabilities not backed by assets, the government might also have to incur an expenditure for the settlement of the sovereign-backed part of Air India's aircraft loan of about Rs 21,000 crore," the FE report said.

The Civil Aviation Ministry has also prepared a rough estimate of airline's physical assets including the carrier's 115-strong aircraft fleet. Assets like Boeing Dreamliners, land parcels, buildings and valuable flying/landing rights and parking slots at airports across the world are valued at Rs 30,000 crore.
16/06/17 Deccan Chronicle