The government is taking a look at transferring Air India’s non-core resources and “unsustainable debt” to a special purpose vehicle (SPV) as a component of measures to resuscitate the national transporter, the best authority said on Tuesday.
Government Planning To Transfer Air India Debt, Non-Core Assets To SPV
After the proposed vital disinvestment of Air India neglected to take off in May, the government has been taking a look at approaches to reinforce the carrier. Against this setting, the authority at the Finance Ministry said that efforts are on to offer non-core resources of Air India.
As a feature of the disinvestment procedure, which has been racked for the time being, the government had proposed making a special purpose vehicle wherein the non-core resources and “unsustainable debt” would be transferred there. The authority said that proposal and encashing the non-core resources is being sought after as it would likewise enable the carrier to remain on its feet.
“This was also proposed for Air India when we had gone for hunting of proposed bidder for Air India,” the official added.
The national carrier’s debt load was more than Rs 48,000 crore toward the end of March 2017. It is remaining above water on a bailout package stretched out by the past UPA regime in 2012.
In the current monetary year, the carrier has gotten a value imbuement of Rs 650 crore up to June. TAP and a Financial Restructuring Plan (FRP) were affirmed for Air India by the past UPA administration in 2012.
A month ago, the government looked for Parliament’s gesture for Rs 980 crore as supplementary gifts for value implantation into the carrier. As indicated by the authority, there is no arrangement “starting at now” to make extra capital imbuement into Air India.