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Too bad Air India: FinMin pours cold water on SPVs for bad loans

Ministry argues entity's debt should be serviced by internal resources; govt should not pay for them

Subhomoy Bhattacharjee  |  New Delhi 

The finance ministry is unlikely to sign on to the proposal for a ‘bad (debt) bank’, going by its response to some of the line ministries on similar proposals. The latest of those is the one to form a special purpose vehicle (SPV) to house Air India’s (AI’s) debt.  The finance ministry argues that debt of any entity must largely be serviced from its own resources, instead of expecting the government to pay for these. While the government is AI’s owner, the suggestion for it to take a haircut on behalf of the airline does not find ...

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First Published: Mon, March 20 2017. 12:35 IST
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