GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Government to Split Air India's Debt Ahead of Stake Sale: Jayant Sinha

Companies including low-cost Indian carrier IndiGo, owned by InterGlobe Aviation, Tata Group and Turkey's Celebi Aviation Holdings, have expressed an interest in buying some of Air India's operations.

Reuters

Updated:March 9, 2018, 10:18 PM IST
facebookTwittergoogleskypewhatsapp
Government to Split Air India's Debt Ahead of Stake Sale: Jayant Sinha
Representative image. (File photo/Reuters)
Mumbai: Government will transfer part of Air India's $8.5 billion debt pile to a special purpose vehicle before selling a stake in the state-owned carrier, its junior civil aviation minister told Reuters on Friday.

Jayant Sinha said the government had already decided to split the debt into sustainable and unsustainable debt. "The unsustainable part will be with the special purpose vehicle (SPV)," he said on the sidelines of an event in Mumbai.

He did not elaborate but Bloomberg, citing sources, reported in November that the government had proposed transferring non-aviation assets and up to 300 billion rupees ($4.6 bln) in short-term loans into a separate company.

Prime Minister Narendra Modi's cabinet gave the go-ahead last year to sell the loss-making flagship airline, after successive governments spent billions of dollars in recent years to keep it solvent. But its debt burden and bloated cost structure have been a concern.

India's Civil Aviation Secretary, Rajiv Choubey, said on Thursday that the government would invite initial bids for Air India in the next couple of weeks.

Companies including low-cost Indian carrier IndiGo, owned by InterGlobe Aviation, Tata Group and Turkey's Celebi Aviation Holdings, have expressed an interest in buying some of Air India's operations.

In January, India cleared a proposal to allow foreign investors to own up to a 49 percent stake in Air India, paving the way for global airlines to also bid for the carrier.

Also Watch

| Edited by: Bijaya Das
Read full article
Most Active
Company Price Change %Gain
Reliance 1,012.50 -19.45 -1.88
HDFC 1,906.75 +47.85 +2.57
Sun Pharma 577.25 +22.75 +4.10
SBI 273.05 +4.40 +1.64
TCS 1,809.80 -9.55 -0.52
Company Price Change %Gain
Reliance 1,012.30 -20.05 -1.94
Larsen 1,295.50 +5.20 +0.40
Tata Steel 560.45 +2.25 +0.40
United Brewerie 1,273.50 -5.35 -0.42
Sun Pharma 576.30 +21.70 +3.91
Top Gainers
Company Price Change %Gain
Sun Pharma 577.25 +22.75 +4.10
Bajaj Finance 2,336.05 +78.60 +3.48
Bajaj Finserv 6,176.50 +184.95 +3.09
M&M 908.20 +24.60 +2.78
HDFC 1,906.75 +47.85 +2.57
Company Price Change %Gain
Sun Pharma 576.30 +21.70 +3.91
M&M 908.15 +24.55 +2.78
HDFC 1,902.40 +47.15 +2.54
Axis Bank 524.65 +11.40 +2.22
Bharti Airtel 374.60 +6.40 +1.74
Top Losers
Company Price Change %Gain
Reliance 1,012.50 -19.45 -1.88
HPCL 311.15 -4.05 -1.28
Coal India 264.85 -2.85 -1.06
Eicher Motors 29,140.65 -284.25 -0.97
UPL 640.20 -5.80 -0.90
Company Price Change %Gain
Reliance 1,012.30 -20.05 -1.94
Coal India 265.10 -2.65 -0.99
TCS 1,811.80 -8.05 -0.44
Wipro 257.95 -1.05 -0.41
Adani Ports 366.00 -0.85 -0.23

Live TV