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Air India to transfer Rs 290 billion debt to special purpose vehicle

Meanwhile, a plan is also being implemented that would result in annual financial benefits worth Rs 20 billion by way of cost cutting and revenue enhancement measures

Topics
Airline  |  Civil Aviation Ministry  |  Air India

Press Trust of India  |  New Delhi 

Air India, disinvestment,

Loss-making will transfer debt worth Rs 290 billion to a Special Purpose Vehicle (SPV), a senior government official said Thursday.

The national carrier has a debt burden of around Rs 550 billion and efforts are being pursued to bolster the airline, including reduction of interest outgo.

The senior official said Rs 290 billion debt would be transferred to the SPV, which has already been set up.

The move is expected to help in easing the financial burden on the

The approval of the lenders would be required before transferring the debt to the Assets Holding Ltd (AIAHL).
 

Meanwhile, a plan is also being implemented that would result in annual financial benefits worth Rs 20 billion by way of cost cutting and revenue enhancement measures.

As part of revival plan for the airline, a ministerial panel on Tuesday approved a proposal for strategic sale of Air India's ground handling subsidiary AIATSL.

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First Published: Thu, November 29 2018. 22:15 IST
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