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Debt biggest challenge for Air India's disinvestment

The Group of Ministers headed by Finance Minster Arun Jaitley will take a call on key issues that will make debt-laden Air India's stake sale to private players more attractive. The Ministerial group will consider hiving off Air Indias assets and a portion of its non-aircraft debt to a special purpose vehicle (SPV) as a first step toward clearing up its balance sheet. The Civil Aviation Ministry had proposed forming a SPV housing a substantial portion of its working capital loan and assets, a senior ministry official said, on the condition of anonymity. The sale of Air India's prime real estate assets will help in meeting its liabilities, the source said. Air India has a total debt of around ₹52,000 crore which comprises of ₹22,000 crore as aircraft loan and the rest as working capital loan and other liabilities.

 
 
 
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