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Air India Rs 1.57 Lakh Crore Loss In 10 Years Government Will Have To Spend A Huge Amount Handed Over To Tata Group

Business Desk, Amar Ujala, New Delhi

Published by: Dev Kashyap
Updated Thu, 14 Oct 2021 01:21 AM IST

Summary

Even after handing over the command of Air India to the Tata group, the government’s share will remain huge. This too has to be paid from the taxpayer’s money only. Debt and arrears paid the largest share of the money spent on Air India since 2009-10.

Air India, the country’s only state-run airline, which is in heavy losses and debt, has found a buyer after a long struggle, but in the last 10 years this airline has blown away Rs 1,57,339 crore of taxpayers. By the time the company’s command is handed over to the Tata Group in December, the government will have to spend a huge amount behind it.

Market analysts say that the government has so far spent a huge amount to run the airlines. Even after handing over its command to the Tata Group, the government’s share will remain a huge liability. It also has to be paid from the taxpayer’s money only. Debt and arrears paid the largest share of the money spent on Air India since 2009-10. In 2019, the government had put Rs 29,464 crore in it by forming a new company Air India Asset Holding Limited (AIAHL) under the Special Purpose Vehicle (SPV). That is, the buyer of the company will not have to pay this debt, but the government will pay it.

Government will have assets worth Rs 14,718 crore
After the completion of the disinvestment process, the non-core assets of Air India will be left with the government. This would include land, buildings, paintings, hotels, etc. Analysts estimate the total value of this property to be Rs 14,718 crore. In this, the estimated cost of land worth 7-8 thousand crores, buildings worth 3-4 thousand crores, paintings and other items will be Rs 2,000 crores. However, it will be difficult to find a buyer at this price. Apart from this, the government will also have the responsibility of four subsidiaries of Air India, which will be valued at about Rs 1,000 crore. Therefore, it will be difficult to find buyers for these properties as well.

where the money will go

existing debt 46,262 crore
vendor dues 15,834 crore
September-December deficit 2,661 crore
Government invested capital 1.10 lakh crore
will meet Tata 2,700 crore
remaining asset value 14,718 crore
total capital spent 1,57,339 crore

Expansion

Air India, the country’s only state-run airline, which is in huge losses and debt, has found a buyer after a long struggle, but in the last 10 years this airline has blown away Rs 1,57,339 crore of taxpayers. By the time the company’s command is handed over to the Tata Group in December, the government will have to spend a huge amount behind it.

Market analysts say that the government has so far spent a huge amount to run the airlines. Even after handing over its command to the Tata Group, the government’s share will remain a huge liability. It also has to be paid from the taxpayer’s money only. Debt and arrears payments accounted for the largest amount of money spent on Air India since 2009-10. In 2019, the government had put Rs 29,464 crore in it by forming a new company Air India Asset Holding Limited (AIAHL) under the Special Purpose Vehicle (SPV). That is, the buyer of the company will not have to pay this debt, but the government will pay it.

Government will have assets worth Rs 14,718 crore

After the completion of the disinvestment process, the non-core assets of Air India will be left with the government. This would include land, buildings, paintings, hotels, etc. Analysts estimate the total value of this property to be Rs 14,718 crore. In this, the estimated cost of land worth 7-8 thousand crores, buildings worth 3-4 thousand crores, paintings and other items will be Rs 2,000 crores. However, it will be difficult to find a buyer at this price. Apart from this, the government will also have the responsibility of four subsidiaries of Air India, which will be valued at around Rs 1,000 crore. Therefore, it will be difficult to find buyers for these properties as well.

where the money will go

existing debt 46,262 crore
vendor dues 15,834 crore
September-December deficit 2,661 crore
Government invested capital 1.10 lakh crore
will meet Tata 2,700 crore
remaining asset value 14,718 crore
total capital spent 1,57,339 crore

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