Civil aviation minister Hardeep Singh Puri on Wednesday told the Rajya Sabha that the government owed Air India Rs 498.17 crore in total dues on account of airfares for VVIP flights till the end of 31 December.
According to reports Puri told Parliament, "Usually, the credit period for government of India departments varies from 15 to 30 days from the receipt of invoice and no interest is paid to Air India in case of non-payment within the credit period."
It was reported last month that Air India was seeking to raise Rs 225 crore through a short-term loan facility from domestic lenders to refinance an earlier loan.
Provisional figures for 2019-20 projected Air India's total debt at Rs 38,366.39 crore. Air India's total net fixed assets were at Rs 45,863.27 crore in March 2020. It includes land, buildings, aircraft fleet, engines, other fixed assets, right-of-use assets and intangible assets.
The government also told the Rajya Sabha that the interest of Air India employees will be safeguarded in accordance with the guidance of Department of Investment and Public Asset Management after divestment.