Loss-making Air India will transfer debt worth Rs 29,000 crore to a special purpose vehicle, a senior government official said Thursday.
The national carrier has a debt burden of around Rs 55,000 crore and efforts are being pursued to bolster the airline, including reduction of interest outgo. The senior Civil Aviation Ministry official said Rs 29,000 crore debt would be transferred to the special purpose vehicle, which has already been set up. The approval of the lenders would be required before transferring the debt to the Air India Assets Holding Ltd.
The move is expected to help in easing the financial burden on the airline.
Meanwhile, a plan is also being implemented that would result in annual financial benefits worth Rs 2,000 crore by cost cutting and revenue enhancement measures.
As part of revival plan for the airline, a ministerial panel on Tuesday approved a proposal for strategic sale of Air India's ground handling subsidiary Air India Air Transport Services Ltd.
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