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

Budget: Highlights

Union minister of finance and corporate affairs Nirmala Sitharaman presented the Union Budget 2023-24 in Parliament on Wednesday. The highlights of the Budget are as follows: PART A     Per capita income has more than doubled to Rs 1.97 lakh in around

Budget presents vision for Amrit Kaal: A blueprint for empowered, inclusive economy

Union Budget 2023-24, presented by finance minister Nirmala Sitharaman in the Parliament on Wednesday, outlined the vision of Amrit Kaal which shall reflect an empowered and inclusive economy.  “We envision a prosperous and inclusive India, in which the fruits of development reach all regions an

Soumya Swaminathan to head M S Swaminathan Research Foundation

Former World Health Organisation (WHO) chief scientist Soumya Swaminathan takes charge as chairperson of M S Swaminathan Research Foundation (MSSRF) from February 1.   Founded by her father, the legendary agricultural scientist M S Swaminathan, MSSRF was set up to accelerate the use of m

m-Governance: Key to Digital India

The digital revolution is being led by India. Digital governance is a key component of the government's ambition to transform India into a society where everyone has access to the internet. It includes both M-governance and E-governance, which are major methods for the delivery of services via mobile devic

A sacred offering of the beauty of ‘Saundarya Lahari’ – in English

Saundarya Lahari: Wave of Beauty Translated from the Sanskrit by Mani Rao HarperCollins, 218 pages, Rs 399 ‘Saundarya Lahari’, usually ascribed to Adi Shankaracharya, has a unique status among the religious-spiritual works of Hinduism.

The Boy Who Became the Mahatma

This year, as the nation commemorates the 75th death anniversary of Mahatma Gandhi on January 30, Rajesh Talwar, a prolific author who is also a legal advisor to the UN, is all set to release a play for children on non-violence chronicling the life of Mahatma Gandhi, ‘The Boy Who Became the Mahat

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter