Even as National carrier Air India is fighting hard to stay afloat, Civil Aviation Minister Hardeep Singh Puri on Wednesday told the Rajya Sabha that the government owed Air India Rs 498.17 crore in total dues. The dues are in account of the air travels of VVIPs as of record till December 31st2020.
Air India is seeking to raise Rs.225 crore through a short-term loan facility from domestic lenders to refinance an earlier loan by the carrier. Puri told the Rajya Sabha “Usually, the credit period for government of India departments varies from 15 to 30 days from the receipt of invoice and no interest is paid to Air India in case of non-payment within the credit period.”
According to provisional figures for 2019-20, Air India’s total debt was ₹38,366.39 crore. In March 2020, Air India’s total net fixed assets were at Rs. 45,863.27 crore. These include land, buildings, aircraft fleet, engines, other fixed assets, right-of-use assets and intangible assets. Puri also spoke about safeguarding the interests of Air India employees. This will be in accordance with the guidance of the Department of Investment and Public Asset Management.