Moneycontrol
HomeNewsBusinessEconomyBudget 2019: Air India en route privatisation as budgetary support drops 100% in 2019-20
Trending Topics

Budget 2019: Air India en route privatisation as budgetary support drops 100% in 2019-20

The national carrier’s business plan is being monitored continuously to keep track of how much money the government needs to infuse in the airline

February 04, 2019 / 16:07 IST
Story continues below Advertisement
Budget 2019_Piyush Goyal

Nikita Vashisht
Moneycontrol News

Modi government could well be on the path of privatising Air India, state backed national carrier, as the airline saw its budgetary support drying up in the interim budget of 2019-20. The government has allocated a meagre Rs 1,00,000 as extra budgetary support for the debt laden carrier which sits on accumulated loss of Rs 55,000 crore.

Story continues below Advertisement

According to the budget document, Centre’s equity backing for the airline dropped by 99.99 percent to Rs 1 lakh against budgetary support of Rs 3,975 crore (revised estimate) during 2018-19.

The budget document further states that the amount for the “turnaround plan” of Air India will be transferred to the special purpose vehicle (SPV), Air India Asset Holding Company Ltd, to undertake the debt servicing programme.