The Live Ahmedabad
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured

The Live Ahmedabad

  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
Ahmedabad BusinessNation

Govt settles over Rs 61,000 crore Air India debt before transfer to Tatas

by TLAteam January 28, 2022January 28, 2022
written by TLAteam January 28, 2022January 28, 2022
Govt settles over Rs 61,000 crore Air India debt before transfer to Tatas

The government has settled over Rs 61,000 crore of Air India’s 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.

Business News

As of August 31, 2021, the airline had a total debt of 61,562 crore. The Tata Group received 15,300 crore, while the remaining 75%, or approximately 46,000 crore, was transferred to a special purpose vehicle, AI Asset Holding Ltd. (AIAHL).

AIAHL also held non-core assets for Air India, such as a stake in Hotel Corp of India (HCIL), paintings and artifacts and immovable properties.

Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), which oversaw the Air India privatisation process in an interview said that Parliament had last month approved a 62,057 crore investment in AIAHL to repay Air India’s dues and liabilities.

Of this, broadly about Rs 61,131 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 to square off the debt now.” As of August 31, 2021, the airline’s total debt stood at Rs 61,562 crore, out of which around Rs 46,000 crore was transferred to AIAHL. The airline also had about Rs 15,000 crore excess liabilities towards unpaid fuel bills and other operational creditors.

So the debt and liabilities with the government was around Rs 61,000 crore. “Both excess debt and excess current liabilities whatever was remaining with the government, about Rs 61,131 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 wasn’t 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 announced as the winning bidder for Air India in October of last year, with a bid of 18,000 crore. Tatas paid Rs. 2,700 crore in cash and claimed Rs. 15,300 crore of the airline’s debt. The transaction also includes the sale of Air India Express and its ground handling subsidiary, AISATS.

Tata Group has already refinanced its 15,300 crore debt in Air India with new lenders.

Tatas beat the Rs 15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its entire stake in the loss-making carrier.

0 comment
previous post
AM/NS India Signs MoUs with Gujarat govt worth Rs 1.66 lakh crore
next post
Omicron’s sub-variant BA.2 more contagious, gradually increasing in India: Centre

You may also like

Sevagram Ashram Trust announces fellowship for studies in...

July 1, 2025

Cabinet Clears ₹1.07 Lakh Crore for Job Creation,...

July 1, 2025

Air India Delhi-Vienna Flight Drops 900 Feet After...

July 1, 2025

Big Changes From July 1: Aadhaar PAN Link,...

July 1, 2025

Big Changes in Railways: Charts 8 Hours Early,...

June 30, 2025

Himanshi Khurana Shares Throwback Photo, Calls Bigg Boss...

June 28, 2025

‘Kaanta Laga’ Fame Shefali Jariwala Passes Away at...

June 28, 2025

Shikhar Dhawan Opens Up About Personal Life and...

June 27, 2025

CJI BR Gavai Asserts Constitution’s Supremacy Amid Ongoing...

June 27, 2025

Shikhar Dhawan Opens Up About 2006 Australia Tour,...

June 27, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Business News

Recent Posts

  • Sevagram Ashram Trust announces fellowship for studies in Gandhian Thoughts

    July 1, 2025
  • 4,000 Investors Cheated in ‘Pump-and-Dump’ Scam Run from Ahmedabad; SEBI Launches Probe

    July 1, 2025
  • Ahmedabad Streets in Trouble: Potholes, Waterlogging Hit 13 Areas

    July 1, 2025
  • Fake Doctor Without Medical Degree Arrested by SOG in Changodar

    July 1, 2025
  • Cabinet Clears ₹1.07 Lakh Crore for Job Creation, Major Boost to Employment and R&D by Modi Government

    July 1, 2025
January 2022
MTWTFSS
 12
3456789
10111213141516
17181920212223
24252627282930
31
« Dec Feb »
The Live Ahmedabad
Footer Logo
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
  • Privacy Policy
  • Disclaimer
  • Cookie Policy
  • Terms of use
  • Advertise with Us
  • Work With Us
  • Contact Us

© 2021 - The Live Ahmedabad. All Rights Reserved.