Govt starts process to privatise former Air India subsidiaries
After selling Air India to the Tata Group, the government is set to privatise two subsidiary companies of the former national carrier.
The Department of Investment and Public Asset Management (DIPAM) has initiated investor meetings and roadshows to gauge interest in AIASL and AIESL, according to the report.
Why were these subsidiaries not sold along with the airline?
A debt-laden Air India was sold to Tata Group in October last year for Rs 18,000 crore. The actual handover to Tatas happened on January 27, 2022.
However, four Air India subsidiaries -- Air India Airport Services Ltd (AIASL), Air India Engineering Services Ltd (AIESL), Alliance Air Aviation Ltd (AAAL), and Hotel Corporation of India Ltd (HCI) -- and other non-core assets, painting and artefacts, besides, non-operational assets were not part of the deal.
Who owns these assets for now?
These subsidiaries and non-core assets valued at about Rs 15,000 crore have been transferred to an SPV called Air India Assets Holding Ltd (AIAHL).
How much debt was Air India into at the time of its acquisition by the Tatas?
As of August last year, Air India had a total debt of Rs 61,562 crore. Of this, the Tata Group took over Rs 15,300 crore liabilities and the rest 75%, or around Rs 46,000 crore, was transferred to AIAHL.
The government has squared off with Air India debtors its share of pending dues.
How much money does the government plan to raise via disinvestment this year?
The government, in current fiscal year, has budgeted to raise Rs 65,000 crore from CPSE disinvestment. So far, it has raised about Rs 25,000 crore.
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