Tuesday, September 04, 2018

Modi government to top up Air India's Rs 50000 crore debt with Rs 2100 crore

The cash strapped national carrier Air India will get fresh debt of Rs 2,100 crore from the government. Air India has been assured of the much needed money in the form of guaranteed borrowing. News agency ANI said that Ministry of Civil Aviation Secretary RN Chaubey had confirmed the credit to Air India today, September 4.

Air India is understood to be in heavy debt to the tune of Rs 50000 crore. At the end of March 2017, the total debt of Air India was estimated at Rs 48,877 crore - Rs 17,360 crore as aircraft loans and Rs 31,517 crore as working capital loans.

Earlier this year in an interview, Civil Aviation Minister Gajapati Raju had said, "When our exercise of calculating Air India's debt began, we found that the sum was hovering around the Rs 50,000 crore mark. But I won't be surprised if the total debt reaches Rs 70,000 crore."
Air India reported loss of Rs 5,765 in 2016-17. Replying to a question in Parliament in January this year, the government projected Air India's net loss for 2017-18 at Rs 3,579 crore.
04/09/18 India Today
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