The authorities will switch about Rs 16,000 crore of unpaid gas payments and different pending dues that Air India owes to suppliers, to a particular objective car earlier than handing over the loss-making airline to the Tata Group, a senior official stated. Air India Assets Holding Ltd (AIAHL), which can maintain non-core belongings of Air India resembling land and constructing, may also be saddled with 75 per cent of the airline’s debt that the Tata Group just isn’t taking on.
Besides the debt, the surplus legal responsibility going to AIAHL includes unpaid gas payments to grease corporations, airport operators, and distributors, stated Tuhin Kanta Pandey, Secretary to the Department of Investment and Public Asset Management – the division operating the privatisation programme of the federal government.
Pandey stated he doesn’t count on these dues to extend a lot by December-end as the federal government would proceed to assist the airline’s operations by giving the Rs 20 crore fund required each day to keep up it as a going concern.
Before the handover of the airline to Tatas, the federal government would once more work on the steadiness sheet of Air India for the remaining 4-month interval (September-December) and no matter liabilities come up could be transferred to AIAHL.
As on August 31, Air India had a complete debt of Rs 61,562 crore. Of this, Tata Sons holding firm Talace Pvt Ltd will take over Rs 15,300 crore and the remaining Rs 46,262 crore might be transferred to AIAHL.
Besides, non-core belongings of Air India, together with land and constructing, valued at Rs 14,718 crore are being transferred to AIAHL.
As a lot as Rs 15,834 crore attributable to operational collectors, like these for gas purchases and different day-to-day operations, as of August 31 too could be transferred to AIAHL, Pandey stated.
“The dues to operational creditors may not go up further in the September-December period if the government continues with the funding… They are dependent on Rs 20 crore/day, if the government shuts down funding then the dues will add up. So more or less it will not very much increase,” Pandey stated.
After adjusting for all of the dues to lenders and operational collectors and in addition the belongings of AIAHL, the online liabilities with AIAHL as of August 31 is Rs 44,679 crore.
The authorities has been incurring per day expenditure of Rs 20 crore to maintain Air India afloat. Excessive debt within the airline’s steadiness sheet had pushed fairness worth to unfavourable at (-)Rs 32,000 crore and the choice earlier than the federal government was to both privatise or shut it down.
Between 2009-10 and until now, the federal government has infused over Rs 1.10 lakh crore into the ailing airline. This contains Rs 54,584 crore as money assist and Rs 55,692 crore as mortgage assure.
The authorities on October 8 introduced that salt-to-software conglomerate Tatas have gained the bid to accumulate debt-laden nationwide service Air India for Rs 18,000 crore.
This features a money cost of Rs 2,700 crore and taking on Rs 15,300 crore debt. The deal, which is predicted to be accomplished by December-end, additionally contains sale of Air India Express and floor dealing with arm AISATS.
As a precursor to Air India sale, the federal government in 2019 had arrange a particular objective car — AIAHL — for holding debt and non-core belongings of the Air India group.
Four Air India subsidiaries — Air India Air Transport Services Ltd (AIATSL), Airline Allied Services Ltd (AASL), Air India Engineering Services Ltd (AIESL) and Hotel Corporation of India Ltd (HCI) — together with non-core belongings, portray and artefacts, and different non-operational belongings, was transferred to the SPV.