Modi said to exclude $4.7b debt before Air India sale

India plans to exclude more than half of the $7.6b debt owed by the struggling national airline to help burnish its appeal as PP Narendra Modi presses ahead with a sale, people with knowledge of the matter said. The government proposes to transfer all of Air India’s non-aviation assets and short-term loans of as much as 300b rupees ($4.7b) to a separate company, readying the airline for prospective buyers, the people said, asking not to be identified discussing confidential information. Authorities aim to kick off the bidding process before March 31, they said. Such a move would mean the government absorbing the money-losing firm’s working capital loans, real estate from Tokyo to London and two hotels. The buyer will be left with aviation-related assets and about 200b rupees of loans borrowed to acquire aircraft, the people said. A successful sale of Air India is crucial for Modi, who wants to showcase his commitment to reducing the state’s role in business after many of his predecessors failed to dispose of the carrier in the face of stiff political opposition. Air India has a combined workforce of 27,000 and labor unions with a history of strikes and grounded flights. It has been unprofitable since its 2007 merger with state-owned domestic operator Indian Airlines. The company made an operating profit of about 1b rupees in the year through March 2016, primarily aided by a slump in oil prices.<br/>