Govt planning to absorb large portion of Air India's debt to woo buyers

Airline has Rs 23,286-cr debt; GoM likely to take a decision on the proposal in two weeks

In a significant departure from its earlier stance, the government is mulling to absorb a large portion of national carrier Air India’s debt which is backed by aircraft.

The debt, which amounts to around Rs 23,286 crore, is mainly on the account of aircraft purchases, which are backed by sovereign guarantees. But those guarantees would end once the airline is purchased by a new owner.

A decision on the matter is crucial as the government is struggling to find a buyer for the airline as the aviation industry across the world has been hit hard by the Covid-19 pandemic.

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