The Central Government is making “all efforts” to complete the disinvestment process of Air India to Tata Sons by the end of December, Secretary Ministry of Civil Aviation Rajiv Bansal on Wednesday.
On October 20, Prime Minister Narendra Modi said the decision on Air India will give new energy to the country’s aviation sector.
Last month, the Centre signed the share purchase agreement with Tata Sons for the sale of the airline for ₹18,000 crores. The amount includes payment of ₹2,700 crores in cash and takes over ₹15,300 crores of the carrier’s debt.
Tata group along with Air India also acquired the low-cost carrier Air India Express and Air India’s 50 percent stake in equal joint venture AISATS.
Equipped with 43 wide-body planes, including 27 Boeing 787s, the airline is incurring a monthly loss of more than ₹600 crores.
As of August 31, Air India had a total debt of ₹61,562 crores. Of the total amount, Talace will take over ₹15,300 crores, and the remaining ₹46,262 crores will be transferred to AIAHL.
Besides, non-core assets of Air India, including land and building, valued at ₹14,718 crores, are also being transferred to AIAHL. Further, liabilities of ₹15,834 crores towards dues to operational creditors, like those for fuel purchases, as of August 31 would be transferred to AIAHL.
Air India Assets Holding Ltd (AIAHL) is a special purpose vehicle set up by the center In 2019 for holding debt and non-core assets of the Air India group.