Successful bidder of Air India will be required to absorb Rs23,286.5 crore of debt after the government transfers Rs63,113 crore of debt from Air India and subsidiary Air India Express Ltd ahead of the national carrier’s proposed divestment. At Rs63,113 crore, the amount works out to be three-fourth of the accumulated debt of the two entities, bulk of which is with Air India.
The government has sweetened the offer this time around. Last time, in 2018, when the Narendra Modi-led government had invited expressions of interest (EoI) to divest 76% stake in the airline, the acquirer was required to absorb Rs49,000 crore in debt.
The Centre on Monday invited preliminary bids to divest its entire stake in Air India, and the airline’s subsidiary Air India Express along with its joint venture Air India SATS Airport Services Private Limited.
