The central government is considering reducing Air India’s debt further and delaying its disinvestment process in order to woo buyers, senior officials said on Friday.
The debt of Air India as on March 31, 2019 was Rs 58, 255 crore. Later in 2019, Rs 29,464 crore of this debt was transferred from Air India to a government-owned special purpose vehicle called Air India Assets Holding Company Limited (AIAHL).
“The government is considering reducing the debt of the airline further in order to make it attractive for interested parties in the current economic scenario affected by the Covid-19 pandemic,” a senior government official said.
More time is likely to be given to bidders to submit their bids and it will delay the disinvestment process further, another government official said.
