Centre considering recasting Air India debt: civil aviation minister

Air India, which has been posting losses for years now, has a debt of around Rs 46,000 crore

GN Bureau | December 19, 2016


#debt   #Air India   #PSU   #ministry of civil aviation  

“There is an idea circulating that Air India will do better if its debt is restructured,” union civil aviation minister Ashok Gajapathi Raju told Hindu BusinessLine.

The minister, however, also stressed the need to evolve a consensus on the matter within his own ministry. “Once you convince yourself, it is easier to convince the others”.

Air India has been posting losses for years now and has a debt of around Rs 46,000 crore.
Raju said: “I am not someone who will indulge in ‘Air India-bashing’, but neither am I going to commit the taxpayers’ money for eternity.” He said the central government was willing to help the airline “pull up its socks as they have done India proud on several occasions”.

The minister added that though debt restructuring will throw the national carrier a lifeline, the ministry has to discuss the benefits of such a move.

“We have to discuss the pros and cons and everyone has to be make-up their mind. Within ourselves, we are not democratic. Just because you have the power to overrule does not mean we should use that power. No one is ‘Mr-Know-it-all’. We have to take all their suggestions,” he was quoted as saying.

Raju said the central government is willing to talk to players who may be interested in picking up a stake in Air India.

He noted that the government was willing to help private airlines too, albeit with policy benefits, but they will have to get their economics right. “We did some hand-holding for SpiceJet, and because of that, we were able to save about 5,000 jobs. SpiceJet too has recovered well now,” he said.

 

Comments

 

Other News

Battle over cattle, Delhi govt schools lead the way and, why we must return to Gandhi & Tagore

On May 23 this year, the ministry of environment issued ‘Rules on prevention of cruelty to animals (regulation of livestock market)’ with the purported aim of regulating animal markets. When one reads the rules – notwithstanding the lame efforts from union ministers to issue clarificati

BEML unveils 9 MW capacity windmill park

  BEML, a mini ratna category-1 enterprise of the defence ministry, has set a target of using 100 percent renewable energy for its own consumption.   In this connection, BEML’s 9 MW Windmill Park installed at Bagalkot District in Karnataka was recently

BHEL registers increase in intellectual capital

  Bharat Heavy Electricals Limited (BHEL), a Maharatna enterprise, has recorded nearly 14 percent growth in its intellectual capital in 2016-17 fiscal. During the year, a record 508 patents and copyrights were filed by the company, translating into filing of nearly two patents/copyrights

NALCO partners with CII, Odisha for outreach programmes on GST

  National Aluminium Company Limited (NALCO) has joined hands with the Confederation of Indian Industries (CII), Odisha, to organise outreach programmes for industries and other stakeholders on GST implementation.   Series of interactive programmes are being

EPFO inks MoU with HUDCO for Housing for All by 2022

  Taking prime minister Narendra Modi’s vision of ‘Housing for all by 2022’ forward, Employees` Provident Fund Organisation (EPFO) has amended the EPF Scheme, 1952 to provide assistance in acquiring affordable houses to the EPF members by allowing withdrawal from PF to

IndianOil LPG import terminal to reduce refill backlog in Kerala

IndianOil is currently transporting bulk LPG from Mangalore to various LPG bottling plants in north Kerala through about 100 bullet trucks every day, which ply on narrow highways. A pipeline connecting the proposed LPG import terminal to Kochi Refineries Limited and the LPG bottling plants at Udayamperoo



Video

पाकिस्तानी सेना कैमरे में कैद करना चाहती थी ये हमला

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter