Budget 2022: Govt allocates additional Rs 51,971 crore to settle Air India’s debt

News Network
February 1, 2022

New Delhi, Feb 1: Having closed the most high-profile disinvestment process of Air India, the government also decided to retire the airline’s debt that it transferred to the Special Purpose Vehicle (SPV). In the Union Budget 2022-23, the government allocated an additional Rs 51,971 crore towards the settlement of outstanding guaranteed liabilities of Air India and its other sundry commitments.

This amount has been accounted in the revised estimates of total expenditure in 2021-22.

“As against a total expenditure of Rs 34.83 lakh crore projected in the Budget Estimates 2021-22, the Revised Estimate is Rs 37.70 lakh crore. The Revised Estimate of capital expenditure is Rs 6.03 lakh crore. This includes an amount of Rs 51,971 crore towards settlement of outstanding guaranteed liabilities of Air India and its other sundry commitments,” Finance Minister Nirmala Sitharaman said during the Budget speech.

The Tata Group acquired 100 percent stake in the airline, in a deal that closed on January 27, for Rs 18,000 crore. Of this, Rs 15,300 crore was taken on as debt, and Rs 2,700 crore was paid to the Centre in cash. For servicing the high-cost debt that it has taken on with the airline, a consortium led by the State Bank of India has approved a plan to provide long-term debt to the Tata Group.

As per the revised estimates of 2021-22, the SPV — AI Asset Holding Ltd — has received Rs 62,057 crore, of which Rs 36,254 crore was infused as equity for repayment of past government-guaranteed borrowings of Air India; Rs 12,357 crore for repayment of borrowings for sale and leaseback rentals for aircraft; and Rs 13,446 crore for repayment of other dues and liabilities.

The huge amount of debt carried by Air India resulting from years of loss-making operations was one of the key hindrances in the past disinvestment attempts by the government. During the last disinvestment process, the government tweaked the bidding conditions to allow potential bidders to place a bid at the enterprise value — meaning they could decide the quantum of debt they would want to take on.

Also, upon finalising the decision to sell its stake in Air India, the government, over the last two years, had stopped infusing funds into the airline and was instead guaranteeing its loans.

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News Network
November 22,2024

Mangaluru: A man fell victim to an online scam, losing Rs 1.7 crore after fraudsters posed as officials from TRAI. According to a complaint filed at the CEN police station, the incident began on November 11, when the complainant received a call from an unknown number at 9:49 am.

The caller, claiming to represent TRAI, alleged that another mobile number registered under the complainant's name was involved in illegal activities in Andheri (East), Mumbai. The caller further stated that an FIR was lodged against the complainant for harassment under the guise of marketing. He was instructed to contact Andheri (East) police station immediately or risk his mobile service being deactivated within two hours.

The complainant was subsequently connected to an individual named Pradeep Sawant, who claimed the complainant was implicated in a money laundering scheme linked to the Naresh Goyal fraud case. Sawant alleged that a fraudulent bank account under the complainant's name was opened at Canara Bank, Andheri, and used to purchase a SIM card for illegal activities. He warned that the complainant could face arrest.

Later, the complainant was contacted via WhatsApp video call by individuals posing as Rahul Kumar (a police officer) and Akanksha (a CBI officer). They allegedly sent fabricated CBI documents to his WhatsApp number. The fraudsters demanded money to "resolve" the case. Fearing threats, the complainant allegedly transferred Rs 1.7 crore through RTGS in batches of Rs 53 lakh, Rs 74 lakh, and Rs 44 lakh between November 13 and 19. A case has been registered at the CEN police station and an investigation is ongoing.

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News Network
November 11,2024

Mangaluru: Six youths including teenagers have been arrested by the Bantwal Rural Police in connection with a brutal assault on 21-year-old Aboobakar (name changed to hide identity), an incident that was widely shared on social media after footage revealed the victim tied to a pole and violently beaten.

The arrested individuals, all from Kanchinadkapadavu, Sajipanadu village in Ullal Taluk, have been identified as Mohammad Sapwan (25), Mohammad Rizwan (25), Irfan (27), Anis Ahmad (19), Nasir (27), and Shakeer (18). According to police reports, the assault took place on November 7 in Kanchinadkapadavu.

The sequence of events began when Aboobakar was reportedly called to a residence in Kanchinadkapadavu by a female relative. Upon his arrival, he was confronted by the accused, who questioned his presence, tied him to a pole with ropes, and attacked him while he was shirtless. 

Aboobakar managed to file a police complaint the following day, detailing the assault. As his injuries worsened, he was admitted to a private hospital in Mangaluru.

While in the hospital, Aboobakar alleged that his attackers intended to kill him during the assault. This statement led to additional charges of attempted murder being filed. 

Police officials stated that the suspects were subsequently apprehended, charged with group assault and attempted murder, and placed in judicial custody. The investigation is ongoing, and further details are awaited.

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News Network
November 14,2024

Bengaluru: Karnataka Deputy Chief Minister D K Shivakumar on Thursday backed Chief Minister Siddaramaiah over his claim that the BJP had offered Rs 50 crore each to 50 Congress MLAs in an attempt to "topple" the state government.

Addressing reporters here, Shivakumar, also the Congress state president, said, “The BJP indeed lured 50 Congress MLAs with Rs 50 crore each.”

He defended Siddaramaiah’s statement and said the Congress MLAs were briefed about the BJP’s alleged 'Operation Lotus', a term used to describe the BJP's attempts to destabilise ruling governments through horse-trading.

“Some of our MLAs informed the Chief Minister about this matter, and he, in turn, shared it with the media,” Shivakumar said.

At an event in Mysuru, Siddaramaiah reiterated the claim that "none of the Congress MLAs had accepted the offer".

He also accused the BJP of filing false cases against him in a bid to "remove him and overthrow his government".

The BJP has yet to respond to the allegations.

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