The government will provide a total of Rs 3,900 crore for servicing Air India’s loans transferred to a special purpose vehicle, according to Budget documents. The Air India Asset Holding Ltd, a special purpose vehicle, has been set up as part of financial restructuring of the debt-laden national carrier.
According to the documents presented in the interim Budget for 2019-20, the government has decided to allocate Rs 1,300 crore for the special purpose vehicle this fiscal. Besides, Rs 2,600 crore would be provided in the next financial year. Put together, it would be Rs 3,900 crore allocation for the special purpose vehicle.
As per a Budget document, the provision has been kept for “servicing of loan transferred to the special purpose vehicle as a result of financial restructuring of Air India”. Read More