The airline was in trouble, no milch cow was being handed over to Tata


New Delhi, October 17 (Agency)

After three different ministers, multiple rules changes, two mission halts, finally, two decades later, Indian taxpayers will no longer have to pay Rs 20 crore a day to keep the loss-making airline Air India in flight. Although the opposition Congress has opposed the decision to sell Air India, Tuhin Kant Pandey, Secretary, Department of Public Property and Management (DIPAM), says that we are not handing over milch cows to Tatas. This airline was in trouble and would need money to build it up.

Pandey said, “Tata cannot lay off employees of the airline for one year. Even after that, if he has to change his workforce, then Voluntary Retirement (VRS) will have to be given. “It will not be an easy task,” he said. The only advantage Tata, the new owner of Air India, has is that they are paying the price they think they will be able to manage. They are not taking the additional debt raised during the previous years to meet the deficit. We have kept it in working condition. This process also saves a lot of money for the taxpayers.

Earlier in the same month, the government had approved the acquisition of Tales Private Limited, a unit of the Tata Group’s holding company. of Air India had accepted the offer. For this, a cash payment of Rs 2,700 crore will be made by Tata, while it will also take a loan of Rs 15,300 crore of the airline.

There was a debt of 61,562 crore till August

Air India had a total debt of Rs 61,562 crore as of August 31. Of this, 75 per cent i.e. Rs 46,262 crore loan will be transferred to the special entity AIAHL. After that this loss-making airline will be handed over to the Tata group. Tata will also not get the airline’s non-core assets such as Air India’s residential colony in Vasant Vihar, Air India building at Nariman Point in Mumbai and Air India building in New Delhi. Pandey said, “We have given the Tata group use permission for two years. Within two years, we have to plan their monetization so that this money can be used to meet the liabilities of AIAHL.



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