Government departments, autonomous bodies owe over Rs 244 cr to Air India

Government departments and autonomous bodies have dues of more than Rs 244 crore to Air India, of which a little over Rs 30 crore has been recovered, government said in Parliament on Monday

"Government departments/autonomous bodies owe Air India Rs 244.78 crore as of September 30, 2021. Out of this, Rs 30.38 crore has been recovered as of November 30, 2021," Minister of State for Finance Bhagwat Kar said in a written reply in Lok Sabha.

He was responding to a set of questions raised by several MPs regarding sale of Air India to Tata group.

Kar said re was a huge accumulated debt on Air India, following which government took an enterprise value (EV) bidding approach for strategic divestment of Air India and its identified subsidiaries and joint ventures.

" strategic disinvestment transaction has been carried out for entire company as a going concern. Assets or than non-core assets and liabilities or than those excluded from transaction will remain with acquirer. 

"Non-core assets of Air India and its subsidiaries (book value of Rs 14,718 crore as on August 31, 2021) are not a part of disinvestment transaction and will not be taken over by successful bidder but transferred to Air India Asset Holding Company (AIAHL), 100 per cent owned by GoI," he said.

A share purchase agreement (SPA) was signed on October 25, 2021, setting up precedent conditions to be fulfilled by bidder (Tata group), Air India and government before closing transaction.

Among ors, Kar said employees of Air India cannot be retrenched for a period of one year from closing date.

y will be eligible for a voluntary retirement scheme with maximum benefits in case of retrenchment in second year from closing, he ded. 

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