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Govt mulls excluding debt of Air India before stake sale

Air India's assets such as real estate could also be spun off into a separate company

Bloomberg 

Air India
Air India

The government, which is planning to sell a stake in its state-run flag carrier, Air India, is considering options to keep out at least a part of its $8 billion of debt to help lure investors, the Civil aviation minister said. 

Air India’s assets such as real estate could also be spun off into a separate company, Ashok Gajapathi Raju said on Friday. 

A call will be taken by a group of ministers headed by Minister Arun Jaitley, and the is open to all options, including allowing foreign in the carrier, he said. “Its books are bad, you can’t leave it like that,” Raju said in his office. “Suppose a portion of its debt is removed, non-aviation-related assets are removed and put into a shell company owned by the government, I think things will work.” 

A successful sale of is the key for Indian Prime Minister Narendra Modi, who has promised reforms and vowed to improve

First Published: Sat, September 09 2017. 02:05 IST
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