Modi government could well be on the path of privatising Air India, state backed national carrier, as the airline saw its budgetary support drying up in the interim budget of 2019-20. The government has allocated a meagre Rs 1,00,000 as extra budgetary support for the debt laden carrier which sits on accumulated loss of Rs 55,000 crore.
According to the budget document, Centre’s equity backing for the airline dropped by 99.99 percent to Rs 1 lakh against budgetary support of Rs 3,975 crore (revised estimate) during 2018-19.
The budget document further states that the amount for the “turnaround plan” of Air India will be transferred to the special purpose vehicle (SPV), Air India Asset Holding Company Ltd, to undertake the debt servicing programme. Read More