The government is planning to raise Rs 10,000 crore by selling subsidiaries and assets belonging to Air India. The proceeds from the sale will be used to pay off a portion of the Rs 29,000-crore loan which the government had taken over from the flag carrier.
The funds will be raised by sale of Air India subsidiaries Air Transport Services Limited (AIATSL), Air India Engineering Services Limited (AIESL) and Airline Allied Services Limited (AASL), The Economic Times reported. The airline's offices in Mumbai and other cities are expected to raise Rs 1,400 crore, the report said.
The government had transferred Air India's loans worth Rs 29,000 crore, out of the total debt of Rs 54,000 crore, and transferred them to a special purpose vehicle Air India Assets Holdings. The decision to divest in certain Air India subsidiaries and assets was taken after the plan to divest 76 per cent stake in the state-owned carrier received no takers last year. With this move, the government had reduced Air India's annual interest payment liability to Rs 2,700 crore from the earlier Rs 4,400 crore.
Meanwhile, the government has asked the airline to make 2018-19 financials for itself and its subsidiaries by the end of June in order to speed up the divestment process of subsidiaries of national carrier Air India.
The government attempted to sell the debt-laden carrier in May last year but failed. In June, a committee led by Finance Minister Arun Jaitley decided to scrap the stake-sale plan for the time being.
14/05/19 Business Today
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The funds will be raised by sale of Air India subsidiaries Air Transport Services Limited (AIATSL), Air India Engineering Services Limited (AIESL) and Airline Allied Services Limited (AASL), The Economic Times reported. The airline's offices in Mumbai and other cities are expected to raise Rs 1,400 crore, the report said.
The government had transferred Air India's loans worth Rs 29,000 crore, out of the total debt of Rs 54,000 crore, and transferred them to a special purpose vehicle Air India Assets Holdings. The decision to divest in certain Air India subsidiaries and assets was taken after the plan to divest 76 per cent stake in the state-owned carrier received no takers last year. With this move, the government had reduced Air India's annual interest payment liability to Rs 2,700 crore from the earlier Rs 4,400 crore.
Meanwhile, the government has asked the airline to make 2018-19 financials for itself and its subsidiaries by the end of June in order to speed up the divestment process of subsidiaries of national carrier Air India.
The government attempted to sell the debt-laden carrier in May last year but failed. In June, a committee led by Finance Minister Arun Jaitley decided to scrap the stake-sale plan for the time being.
14/05/19 Business Today
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