Beleaguered state carrier Air India has received a fresh breather as the government extended £210 million of guaranteed borrowing from the Centre. The announcement was made by Ministry of Civil Aviation Secretary, RN Choubey. The update comes at a time when reports claim the government is considering not to disinvest the airlines. A member of the Parliament's Standing Committee on Transport, Tourism and Culture, said, “They don't have any plans in the near future as they don't have any buyers.”
Officials of the Senior Civil Aviation Ministry briefed the panel on different issues plaguing the national carrier. The panel wanted to know the number of funds being infused into Air India, which the government failed to disinvest in May. On March 28, the Central government had invited an Expression of Interest for disinvestment of Air India, including its shareholding interest in Air India Express Ltd and Air India SATS. It, however, had not received any response till it's closing day, May 31.
Last month, a senior Finance Ministry official said that the government plans to transfer the debt and non-core assets of the loss-making carrier to a special purpose vehicle (SPV). The proposal is expected to financially revive the debt-ridden airline through the sale of its non-core assets. A ministry official said, “What they have suggested is... a proposal... for making a special purpose vehicle, transferring its non-core assets and the unsustainable debt to that SPV and then encashing through sale or divestment of those assets.”
They added, “As of now, as stated in the budget that capital infusion will be made... other than that there is no such plan for fresh capital infusion.”
