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These “extra liabilities” being transferred to Air India Asset Holding Firm Ltd add as much as Rs 15,834 crore — which is greater than 1 / 4 of the airline’s complete debt, pegged at Rs 61,562 crore on the finish of August.
So what are these “extra liabilities”? Authorities sources mentioned these are largely unpaid payments of oil corporations, airport operators and different distributors that Air India had managed to keep away from paying over time by advantage of being a wholly-owned authorities firm. The federal government too has some half on this because it typically delays funds, together with for tickets bought for its workers via one other public sector firm, Balmer Lawrie.
“The sale won’t simply cease the hit that the federal government has to take each day but additionally assist clear up the system and launch funds,” a authorities official instructed TOI.
Whereas the liabilities, together with loans and unpaid payments, will probably be taken over by the brand new entity instantly, it should solely be capable of monetise the belongings over the subsequent few years, relying in the marketplace situation. Within the interim, it must work out preparations with banks and different collectors to transform the phrases, which the federal government believes shouldn’t be a difficulty as the federal government has assured 94% of the loans used to maintain the airline afloat, towards gathered losses of almost Rs 84,000 crore on the finish of March.
In addition to, the phrases of the transaction present for the federal government to bear the monetary impression of Air India operations till the corporate is transferred to its new proprietor by the tip of December, officers mentioned.
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