MoCA to soon finalise new asset sale plan for Air India

The MoCA is making another effort to sell debt-ridden Air India for which a new asset sale plan is being drafted and is expected to be finalised soon. According to the ministry, the government must completely exit the airline’s operations. In early 2019, the government transferred Rs 290 billion debt of the airline’s book to the special purpose vehicle – Air India Assets Holding Limited – thus reducing the airline’s interest burden from Rs 24 billion to Rs 17 billion annually, thereby making its privatisation a lucrative option. However, very recently, oil marketing companies (OMCs) stopped fuel supplies to the Air India Group at six airports because of pending dues amounting to Rs 50 billion. The issue is expected to be resolved soon with the help of equity support from the government.