New Delhi: The authorities has settled over Rs 61,000 crore of Air India’s legacy debt and different liabilities that have been left in AIAHL — the corporate holding residual property and liabilities of the airline — forward of the switch of the nationwide service to the Tata Group, a prime official stated on Thursday.
The airline had a complete debt of Rs 61,562 crore as of August 31, 2021. Of this, the Tata Group took over Rs 15,300 crore and the remaining 75 per cent or round Rs 46,000 crore was transferred to a particular function car, AI Asset Holding Ltd (AIAHL).
AIAHL additionally held Air India’s non-core property similar to stake in Hotel Corp of India (HCIL), work 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 course of — stated Parliament had final month given nod for spending of Rs 62,057 crore in direction of fairness infusion in AIAHL for compensation of dues and liabilities of Air India.
Of this, broadly about Rs 61,131 crore has been used to repay your complete debt and different liabilities similar to gasoline dues to grease corporations, he stated.
“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 whole debt stood at Rs 61,562 crore, out of which round Rs 46,000 crore was transferred to AIAHL. The airline additionally had about Rs 15,000 crore extra liabilities in direction of unpaid gasoline payments and different operational collectors.
So the debt and liabilities with the federal government was round 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 stated.
“Whatever was to be borne by the federal government that the federal government has squared off relatively than paying it off later… we discovered that it’s carrying increased price of curiosity. 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 stated.
Tata Group was in October final 12 months introduced because the profitable bidder for Air India with a bid quantity of Rs 18,000 crore. Tatas have paid Rs 2,700 crore money and brought over Rs 15,300 crore of the airline’s debt. The deal additionally contains sale of Air India Express and floor dealing with arm AISATS.
Tata Group has already refinanced its Rs 15,300 crore debt in Air India and introduced in new lenders.
Tatas beat the Rs 15,100-crore provide by a consortium led by SpiceJet promoter Ajay Singh and the reserve value of Rs 12,906 crore set by the federal government for the sale of its 100 per cent stake within the loss-making service.
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