The government has prepared a new revival plan for Air India which involves transferring the airline’s working capital debt of about Rs 290 billion to an SPV known as Air India Assets Holding Limited. At present, Air India has a total debt of Rs 550 billion. Once the revival plan is implemented, the carrier will be left with debt of about Rs 260 billion, mostly on account of aircraft loans. Moreover, the airline’s annual interest liabilities will decline from Rs 44 billion to Rs 17 billion. The carrier has already started discussions with banks as their consent is required for the debt transfer to take place.