Air India privatisation: New owner may not get INR210b of promised equity

The govt may not infuse about INR210b in the promised equity into Air India once the airline is privatised, a top official said. Air India was promised INR500b in equity infusion until 2032 by the previous United Progressive Alliance govt in 2012 to bail out the airline weighed down by accumulated losses and debt. Of that, Air India has already received nearly INR270b, including INR18b this fiscal year. An amount of IINR18b is earmarked for infusion in the carrier in the next fiscal, the year in which the airline is likely to be privatised in line with the current road-map of the govt, said a govt official. The numbers can change depending on the sale process, the official added. This will mean the new owner of the airline will not get the promised INR210b of equity. <br/>