The government is considering raising more than ₹30,000 crore through bonds to repay the debt of Air India, the national carrier which it has agreed to sell to the Tata Group, a senior official in the know of the matter said.
Air India Asset Holdings Ltd (AIAHL), which has been formed to take over the airline’s debt of about ₹75,000 crore and assets worth ₹17,000 crore, will likely issue the bonds. “While the monetisation of assets and earnings through sale will help in repayment of a substantial portion of AI’s debt, the government will still require to pay over ₹30,000 crore and that will be raised through bonds,” said the person on the condition of anonymity.
