Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
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The Centre has sought Parliament’s nod for an additional equity infusion of Rs. 2,345 crore for debt-laden Air India (AI) and a separate sum of Rs. 1,300 crore for a special purpose vehicle (SPV) which houses the national carrier’s debt and non-core assets. Special purpose vehicle The SPV, Air India Assets Holding, comprises Rs. 29,000 crore of the Rs. 55,000 crore debt of AI and the airline’s non-core assets such as the ground-handling arm and land. The purpose is to liquidate the assets and pay off the debt parked in the SPV. The government had earlier provided an interim support of Rs. 980 crore as equity by way of supplementary grants in September. This was in addition to the Rs. 650 crore set aside for the ailing carrier during the Budget announcement. It had already provided sovereign guarantee to enable Air India to raise Rs. 2,000 crore from banks, which the airline has availed. The airline had also raised Rs. 1,000 crore from the National Small Savings Fund. The government’s effort to divest its stake in the loss-making airline earlier this year met with a failure. It maintains that it will revisit the process once macroeconomic conditions turn favourable.
