Business

Govt. may infuse ₹2,345 cr. more in AI

Seeks approval from Parliament

The Centre has sought Parliament’s nod for an additional equity infusion of ₹2,345 crore for debt-laden Air India (AI) and a separate sum of ₹1,300 crore for a special purpose vehicle (SPV) which houses the national carrier’s debt and non-core assets.

Special purpose vehicle

The SPV, Air India Assets Holding, comprises ₹29,000 crore of the ₹55,000 crore debt of AI and the airline’s non-core assets such as the ground-handling arm and land. The purpose is to liquidate the assets and pay off the debt parked in the SPV.

The government had earlier provided an interim support of ₹980 crore as equity by way of supplementary grants in September. This was in addition to the ₹650 crore set aside for the ailing carrier during the Budget announcement.

It had already provided sovereign guarantee to enable Air India to raise ₹2,000 crore from banks, which the airline has availed.

The airline had also raised ₹1,000 crore from the National Small Savings Fund.

The government’s effort to divest its stake in the loss-making airline earlier this year met with a failure. It maintains that it will revisit the process once macroeconomic conditions turn favourable.

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Printable version | Apr 3, 2020 11:33:32 AM | https://www.thehindu.com/business/govt-may-infuse-2345-cr-more-in-ai/article25791747.ece

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