Saturday, September 07, 2019

Govt may hive off more debt from Air India to woo buyers

In an attempt to garner more interest for Air India, the government may hive off more debt from the balance sheet of the airline, sources aware of the development said.

It is important to note that the government has already decided to transfer Rs 29,464 crore of Air India's debt into a special purpose vehicle. While the formalities are not yet completed, the decision has been taken.

"The fresh round of discussion is to examine whether additional debt, over and above this figure (Rs 29,464 crore) can be removed and to what extent can the debt be hived off," the sources said.

As per the provisional figures of FY 2018-19, the total debt of Air India Ltd as on March 31, 2019, is Rs 58,351.93 crore

While a meeting on the divestment process has already taken place at the cabinet secretary level, the divestment document, which will put up to Air India Specific Alternative Mechanism (AISAM) for approval, is yet to be finalised. A date for the meeting of AISAM has also not been decided yet.

AISAM is a panel which was formed last year to oversee the disinvestment of the national carrier. Under the newly formed government, the panel will be led by Home Minister Amit Shah. Earlier, it was headed by the finance minister.
06/09/19 CNBC TV18
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