After the privatization of Air India, the central government will now start work on selling its four subsidiaries, including Alliance Air. Tuhit Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said that non-core assets worth over Rs 14,700 crore, including land and buildings, will also be sold.
On October 8, the government had announced that the Tata Group won the bid to buy the debt-ridden Air India.
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The deal includes a cash payment of Rs 2,700 crore and a debt liability of Rs 15,300 crore. Along with Air India, Air India Express and Ground Handling Unit AISATS have also been sold.
Pandey said that DIPAM will now work on the plan to sell the subsidiaries of Air India. These subsidiaries are under Special Purpose Vehicle AIAHL.
He said that clearing the liabilities of AIAHL and selling the assets is a big task.
Air India had a total debt of Rs 61,562 crore. Out of this, Tata Sons’ company Tales Private Limited will take responsibility of debt of Rs 15,300 crore and the remaining loan of Rs 46,262 crore will be transferred to AIAHL.
The government has to spend around Rs 20 crore each day to keep Air India operational. The government had the option of making it private or shutting it down.
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