Govt settles over Rs 61000 cr Air India debt other liabilities before transfer to Tatas
New Delhi Jan 27 PTI The government has settled over Rs 61000 crore of Air Indias legacy debt and other liabilities that were left in AIAHL — the company holding residual assets and liabilities of the airline — ahead of the transfer of the national carrier to the Tata Group a top official said on Thursday The airline had a total debt of Rs 61562 crore as of August 31 2021 Of this the Tata Group took over Rs 15300 crore and the rest 75 per cent or around Rs 46000 crore was transferred to a special purpose vehicle AI Asset Holding Ltd AIAHL AIAHL also held Air Indias non-core assets such as stake in Hotel Corp of India HCIL paintings and artifacts and immovable properties In an interview with PTI Tuhin Kanta Pandey Secretary Department of Investment and Public Asset Management DIPAM — which ran the Air India privatisation process — said Parliament had last month given nod for spending of Rs 62057 crore towards equity infusion in AIAHL for repayment of dues and liabilities of Air India Of this broadly about Rs 61131 crore has been used to repay the entire debt and other liabilities such as fuel dues to oil companies he said The interest outgo on the debt and other liabilities was very high and it was decided tosquare off the debt now As of August 31 2021 the airlines total debt stood at Rs 61562 crore out of which around Rs 46000 crore was transferred to AIAHL The airline also had about Rs 15000 crore excess liabilities towards unpaid fuel bills and other operational creditors So the debt and liabilities with the government was around Rs 61000 crore Both excess debt and excess current liabilities whatever was remaining with the government about Rs 61131 crore have been cleared Pandey said Whatever was to be borne by the government that the government has squared off rather than paying it off later we found that it is carrying higher rate of interest It wasnt worthwhile to retain it and pay it off later If we take it to AIAHL and pay it later we have to pay higher rate of interest So we have chosen to square it off straight away he said Tata Group was in October last year announced as the winning bidder for Air India with a bid amount ofRs 18000 crore Tatas have paid Rs 2700 crore cash and taken over Rs 15300 crore of the airlines debt The deal also includes sale of Air India Express and ground handling arm AISATS Tata Group has already refinanced its Rs 15300 crore debt in Air India and brought in new lenders Tatas beat the Rs 15100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12906 crore set by the government for the sale of its 100 per cent stake in the loss-making carrier PTI JD ANZ ABM ABM
New Delhi Jan 27 PTI The government has settled over Rs 61000 crore of Air Indias legacy debt and other liabilities that were left in AIAHL — the company holding residual assets and liabilities of the airline — ahead of the transfer of the national carrier to the Tata Group a top official said on Thursday The airline had a total debt of Rs 61562 crore as of August 31 2021 Of this the Tata Group took over Rs 15300 crore and the rest 75 per cent or around Rs 46000 crore was transferred to a special purpose vehicle AI Asset Holding Ltd AIAHL AIAHL also held Air Indias non-core assets such as stake in Hotel Corp of India HCIL paintings and artifacts and immovable properties In an interview with PTI Tuhin Kanta Pandey Secretary Department of Investment and Public Asset Management DIPAM — which ran the Air India privatisation process — said Parliament had last month given nod for spending of Rs 62057 crore towards equity infusion in AIAHL for repayment of dues and liabilities of Air India Of this broadly about Rs 61131 crore has been used to repay the entire debt and other liabilities such as fuel dues to oil companies he said The interest outgo on the debt and other liabilities was very high and it was decided tosquare off the debt now As of August 31 2021 the airlines total debt stood at Rs 61562 crore out of which around Rs 46000 crore was transferred to AIAHL The airline also had about Rs 15000 crore excess liabilities towards unpaid fuel bills and other operational creditors So the debt and liabilities with the government was around Rs 61000 crore Both excess debt and excess current liabilities whatever was remaining with the government about Rs 61131 crore have been cleared Pandey said Whatever was to be borne by the government that the government has squared off rather than paying it off later we found that it is carrying higher rate of interest It wasnt worthwhile to retain it and pay it off later If we take it to AIAHL and pay it later we have to pay higher rate of interest So we have chosen to square it off straight away he said Tata Group was in October last year announced as the winning bidder for Air India with a bid amount ofRs 18000 crore Tatas have paid Rs 2700 crore cash and taken over Rs 15300 crore of the airlines debt The deal also includes sale of Air India Express and ground handling arm AISATS Tata Group has already refinanced its Rs 15300 crore debt in Air India and brought in new lenders Tatas beat the Rs 15100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12906 crore set by the government for the sale of its 100 per cent stake in the loss-making carrier PTI JD ANZ ABM ABM
