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 25,2024

Udupi: Six junior artists from the prequel of Kannada blockbuster film ‘Kantara’ were injured, when the bus they were travelling in overturned in the district, police said on Monday.

According to police, the accident occurred near Jadkal on Sunday night when the mini-bus carrying the crew of the film overturned.

“The incident happened while they were returning to Kollur after completing the shoot at Mudoor in Jadkal. The mini-bus was carrying 20 junior artistes when it met with the accident,” a police officer said.

The injured were rushed to hospitals in Jadkal and Kundapur for treatment, they said.

The Kollur police are investigating the matter.

"The news making rounds is completely false. The Kantara: Chapter 1 team began shooting at 06:00 AM today, and everything is proceeding as normal. A minor accident occurred 20 kilometres away from the shooting location, involving a local bus carrying some members of the Kantara team. However, no injuries were reported," a source close to the production said.

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News Network
November 15,2024

Udupi: The Tourism Department is planning a major eco-friendly development initiative for Kamini Island, located near the Blue Flag-certified Padubidri End Point beach, aiming to attract more visitors while maintaining environmental sustainability.

Assistant Director Kumar CU emphasized that, given the island’s proximity to the Blue Flag beach, all development efforts will center around eco-friendly practices. “We are looking to enhance the Kamini River and the island’s surroundings by adding a hanging bridge, nature trails, and eco-friendly food courts offering traditional cuisine. Visitors will also be able to reach the island by pedal boats or kayaking,” he said.

The development project is estimated to cost between Rs 3 crore and Rs 4 crore. Meanwhile, the Blue Flag beach, Padubidri, continues to see a steady flow of visitors. Vijay Shetty, manager of the beach, shared that tenders for food courts and water sports have been awarded to private parties. Recently, three new coracles have been introduced, which are proving to be a hit with visitors. Additionally, three more shelters are expected to be ready by November 20.

Shetty mentioned that the beach can now accommodate between 2,500 and 3,000 visitors daily, although footfall remains lower than other district beaches due to user fees and activity restrictions. “Initially, most visitors were from Mangaluru, but now nearly 40% come from other districts, showing a shift in the visitor demographics,” Shetty noted.

To further boost tourism and promote a healthy lifestyle, a Beach Carnival is set to take place on November 23-24, featuring the National Sea Swimming Championship and a sea marathon in collaboration with the Padubidri JCI, which is celebrating its golden jubilee. Cultural events will be held at the main beach, with some sports events taking place at the Blue Flag beach. Emphasis will be placed on making all activities environmentally friendly.

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