Government approves transferring a part of Air India’s debt to SPV

The government has cleared a plan to transfer about Rs 290 billion working capital debt to the SPV Air India Assets Holding Limited. The proposed move will help reduce which annual interest burden substantially. At present, the airline is reeling under a debt of Rs 550 billion which carries an interest burden of Rs 44 billion. Once the revival plan is implemented, the interest burden will be reduced to Rs 17 billion. In another effort to revive the airline, the government had recently approved the sale of Air India’s subsidiary – Air India Air Transport Services. The proceeds of the sale will be used for clearing a part of the debt.