HomeBusinessGovt. kickstarts sale process of 2 subsidiaries of erstwhile national carrier Air...

Govt. kickstarts sale process of 2 subsidiaries of erstwhile national carrier Air India


A debt-laden Air India was offered to Tata Group in October final yr for ₹18,000 crore. The precise handover to Tatas occurred on January 27, 2022

A debt-laden Air India was offered to Tata Group in October final yr for ₹18,000 crore. The precise handover to Tatas occurred on January 27, 2022

The federal government has initiated the method of privatising 2 subsidiaries — AIASL and AIESL — of erstwhile nationwide provider Air India, an official mentioned.

“The Division of Funding and Public Asset Administration (DIPAM) has initiated investor conferences and roadshows to gauge curiosity in AIASL and AIESL. We’ll quickly invite EoIs from bidders,” the official mentioned.

A debt-laden Air India was sold to Tata Group in October final yr for ₹18,000 crore. The precise handover to Tatas occurred on January 27, 2022.

Nevertheless, 4 Air India subsidiaries —Air India Airport Companies Ltd (AIASL), Air India Engineering Companies Ltd (AIESL), Alliance Air Aviation Ltd (AAAL),  and Resort Company of India Ltd (HCI) — and different non-core property, portray and artefacts, in addition to, non-operational property weren’t a part of the deal.

These subsidiaries and non-core property valued at about ₹15,000 crore have been transferred to an SPV — Air India Belongings Holding Ltd (AIAHL).

The federal government had then mentioned these subsidiaries and non-core property of the provider would finally be offered off. In the direction of that objective, DIPAM has initiated the train of investor conferences for privatisation of AIASL and AIESL.

As of August final yr, Air India had a total debt of ₹61,562 crore. Of this, the Tata Group took over ₹15,300 crore liabilities and the remainder 75% or round ₹46,000 crore was transferred to AIAHL.

The federal government has squared off with Air India debtors its share of pending dues.

The federal government, within the present fiscal yr, has budgeted to boost ₹65,000 crore from CPSE disinvestment. Thus far, it has raised about ₹25,000 crore.



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