To meet its compelling capital requirements National struggling carrier Air India is to raise 1000 crore. The tenancy of the loan will be for a year and the airline will keep the option to recommence the loan. The dispossession has left Air India without any bidders thereby around 11,000 staff employees were left without any salaries. The combined debt of AI and Ai Express is 60.047 Cr.
The disinvestment was a result of the holdup of the equity strain by the government in the year 2018 yet a subsequent attempt was made in the next financial year by the government with a target of raising 1.05 lakh Cr through disinvestments. Arising from the earlier bid that was unsuccessful there were some changes that were made, they offered to sell a 100 percent government stake in AI and AI Express rather than the 76 percent that was pre-decided beforehand. Pecuniary sources of five thousand crore rupees were made to acquire Air India which has been reduced to being procured at three and a half crore rupees. Earlier the government had placed a state that the buyers will also pay Air India’s debt of 32 thousand crores but now this amount is only 23 thousand crores. The latter change gave complete up and running freedom to the owner. The bidding criteria for any sole proprietor or an organization had just one exception of having a minimum net worth of 3500 Cr and each member representing the organization or the club shall have a net worth of 350 Cr.
Well incorporating it as long as the government does not privatize it, It will remain a hitch, the problems of the state bankroll and the problems of the economy will not be removed. Already Air India and other PSUs are running under huge losses.