Budget 2022: Modi govt’s final Rs 51,000-crore goodbye to Air India

Gordon B. Johnson

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In a ultimate goodbye of sorts to Air India, finance minister Nirmala Sitharaman declared the allocation of Rs 51,000 crore to clearing Air India’s dues to different banking institutions.

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This assumes importance considering that immediately after the sale of Air India to the Tata group, just about Rs 46,000 crore of the airline’s Rs 61,000 crore personal debt was intended to be paid again by the authorities. The Tata team was saddled with only Rs 15,000 crore of the airline’s humongous financial debt.

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Even though the Tata team experienced acquired various delivers from many community sector banks to assistance its money owed, there were concerns more than how the central federal government would mobilise resources to company its obligation. The debts and find belongings of the erstwhile national airline was transferred to a special intent car named Air India Asset Holding Organization (AIAHL).

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Although the Tatas were being reportedly presented a personal loan on comfortable phrases by SBI and a few of other public sector banking companies to provider its component of the money owed, the central government was generally relying on monetizing Air India’s assets which were being not transferred to the Tatas to repay its obligations.

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With Sitharaman asserting an allocation of Rs 51,000 crore to distinct Air India’s credit card debt in her funds speech, the governing administration last but not least would seem to have shook the monkey off its again.

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The Tata group had taken above Air India’s administration on January 27, 2022 hardly a 7 days before the budget. The government would be obtaining only Rs 2700 crore from the Tatas for selling the airline alongside with its hundreds of plane and other property.

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In her last spending budget, Sitharam had pegged the government’s disinvestment targets at Rs 1.75 trillion. Having said that, it managed to get just about Rs 9,330 crore. Air India was the most major disinvestment in 2021-22.

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