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.
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.
The fresh financial assistance to the Air India comes in the wake of reports that the government is mulling the option to divest its share in Air India. A Business Today report said that the government's plans to turnaround Air India has not yielded desired result. The proposed strategic stake sale in May this year failed to get a single buyer turning up to bidding.
In March this year, the Centre had appointed Ernst & Young LLP India (EY) as its transaction advisor for advising and managing the proposed strategic disinvestment of the national carrier by way of transfer of management control and sale of 76 per cent equity share capital of the airlines held by the government.
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.
The fresh financial assistance to the Air India comes in the wake of reports that the government is mulling the option to divest its share in Air India. A Business Today report said that the government's plans to turnaround Air India has not yielded desired result. The proposed strategic stake sale in May this year failed to get a single buyer turning up to bidding.
In March this year, the Centre had appointed Ernst & Young LLP India (EY) as its transaction advisor for advising and managing the proposed strategic disinvestment of the national carrier by way of transfer of management control and sale of 76 per cent equity share capital of the airlines held by the government.