Following the completion of the significant privatization process of Air India, Alliance Air acquired its four subsidiaries, including Land and Building, at a cost of Rs. The government will also start raising Rs 14,700 crore worth of non-investment investment and public property. Management (DIPAM) Duhin Kanda Pandey said.
On October 8, the government announced that Total, a salt-to-software company, had succeeded in acquiring Air India, a national carrier with a debt burden of Rs 18,000 crore.
This includes Rs 2,700 crore in cash payments and Rs 15,300 crore in borrowing. The deal, which expires at the end of December, includes the sale of Air India Express and ground handling AISADS.
Mr Pandey told agencies that his department would now go down to develop a plan to monetize the vehicle and establish liabilities for the special purpose of AAAHL, a subsidiary of Air India.
“There will be a plan to monetize the assets of Air India Assets Holding Limited (AIAHL).
“It (sales of subsidiaries) could not start because all these are closely linked. Until Air India goes, we cannot pursue other things,” he added.
As a pioneer in Air India sales, the government set up a Special Purpose Vehicle (SPV) -AIAHL in 2019 to hold the debt and non-essential assets of the Air India Group.
Four Air India subsidiaries – Air India Air Transport Services Limited (AIADSL), Airline Alloy Services Limited (AASL), Air India Engineering Services Limited (AIESL) and Hotel Corporation of India Ltd. (Pvt. Ltd.) Non-performing assets, transferred to SPV.
As on August 31, Air India had a total debt of Rs 61,562 crore. Of this, Tata Sons holding company Talas Pvt Ltd will take Rs 15,300 crore and the remaining Rs 46,262 crore will be transferred to AIAHL.
Besides, non-core assets worth Rs 14,718 crore, including Air India’s land and building, are being transferred to AIAHL. In addition, as on August 31, Rs 15,834 crore owed to debtors such as fuel purchases will be transferred to AIAHL.
Mr. Pandey said the government would prepare Air India’s balance sheet from September 1 to December 31, 2021, shortly before the conclusion of the deal.