Air India gets Rs 2,100 Crore as 'government guaranteed borrowing'
New Delhi, Sep 4: Debt ridden public carrier Air India has been granted Rs 2100 Crore as 'government guaranteed borrowing', said the Ministry of Civil Aviation on Tuesday.
"Air India gets Rs 2100 Cr government guaranteed borrowing," an ANI report quoted RN Chaubey, Secretary, Ministry of Civil Aviation, as saying.
Loss-making Air India is estimated to have a debt burden of more than Rs 48,000 crore. Air India has been making losses since the merger with Indian Airlines in 2007. As per its audited accounts, the airline's accumulative losses stood at Rs 47,145.62 crore in financial year 2016-17.
RN Choubey had in August said that the government is working on a new turnaround plan for Air India. He had reportedly said the plan will include infusing capital. But, he declined to give details on the extent of capital infusion.
"Discussions are going on with the finance ministry," he had then said.
Last month, a senior Finance Ministry official said the government was looking at transferring Air India's non-core assets and "unsustainable debt" to a special purpose vehicle as part of measures to revive the national carrier, reported PTI.
In the current financial year, the airline has received an equity infusion of Rs 650 crore up to June. A Turnaround Plan (TAP) and a Financial Restructuring Plan (FRP) were approved for Air India in 2012.