Centre evaluates plan to cut Air India's Rs 58,000 crore debt by half: Report
The report quoted sources saying that the government has planned to ask prospective investors to take up this debt, and may seek a possible expression of interest by as early as December 15.
November 27, 2019 / 05:43 PM IST
The government is evaluating a plan to take close to Rs 30,000 crore of Air India’s debt off its books, a report by Bloomberg said quoting sources.
As per the report, the government plans to ask prospective investors to take up this debt and may seek a possible expression of interest by as early as December 15.
The airline is sitting on a debt pile of around Rs 58,000 crore, besides huge accumulated losses running into thousands of crores.
Some entities have already expressed interest in buying Air India, the sources said, adding the Expression of Interest (EoI) document is being given the final touches.
EoI inviting bids for 100 percent stake sale are likely to be floated either this month-end or next month, they added.
Earlier this month, Air India management held a meeting with its trade unions on the proposed privatisation of the loss-making carrier.
Majority of its unions are opposed to the move, fearing job losses.
Earlier, PTI had reported that a similar amount of roughly Rs 30,000 crore of Air India's debt could be repaid by way of proceeds from the issuance of bonds by its special purpose vehicle, Air India Asset Holding Ltd (AIAHL).