Centre approves divestment in Air India; approves transfer of carrier’s debt to SPV

January 3, 2020

The central government approved the divestment proposal of Air India on January 7, 2020 and revealed that the expression of interest document will be issued soon. Apart from this, the government has also approved transfer of debt owed by the carrier to the SPV. The government has already transferred about Rs 294 billion into the SPV and there is another proposal to transfer further debt and liabilities to the SPV before selling the airline with the remaining debt of about Rs 200 billion, primarily on account of aircraft loans.