The government is likely to pay Air India’s dues worth Rs 22,000 crore to vendors such as airports and oil companies before putting up the airline for sale, senior government officials told ET.
The government may also waive the airline’s entire working capital debt of about Rs 15,500 crore, enabling it to offer Air India to potential buyers with its loan burden reduced to about Rs 20,000 crore.
“We are discussing ways to reduce these dues, which the airline owes to oil companies and various airport operators, among others,” said a senior government official who did not want to be identified.
