Air India is staying afloat on a bailout package extended by the previous UPA regime in 2012. Earlier this year, the governments efforts for strategic disinvestment of debt-laden Air India failed to take off. After the proposed strategic disinvestment of Air India did not find any takers in May, the government has been looking at ways, including sale of non-core assets, to bolster the carriers fortunes..The Commercial Cooling Units debt burden of the national carrier, which is grappling with tough business conditions, is estimated to be more than Rs 50,000 crore. Whatever is the excess unsustainable debt (it) will be taken out..”What government is doing in Air India is to restructure the finance of Air India in a way that Air India is there with a sustainable level of debt. Air India with sustainable debt will work as a viable entity,” Garg told PTI in an interview. So far, the airline has received more than Rs 27,000 crore worth equity infusion. A Turnaround Plan (TAP) as well as a Financial Restructuring Plan (FRP) were approved for Air India by the previous UPA regime in 2012. In the current financial year, the airline has received an equity infusion of Rs 650 crore up to June.Further, he sad that the airlines unsustainable debt would have to be placed in some special purpose vehicle..New Delhi: The government is working on restructuring national Air Indias finances to ensure that the airline has “sustainable debt”, Economic Affairs Secretary Subhash Chandra Garg said.Under these plans, the airline is to get budgetary support amounting to Rs 30,231 crore over a ten-year period and also equity support for the payment of principal/ interest of the non-convertible debentures
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