Hardeep Singh Puri, India’s Civil aviation minister on Wednesday told the Rajya Sabha that the Various government departments owe divestment-bound Air India Ltd ₹498 crores towards VVIP charter flights.
Puri on Wednesday told the Rajya Sabha that the government’s total dues on account of airfares for VVIP flights stood at ₹498.17 crore at the end of 31 December.
“Usually, the credit period for the 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,” Puri said in the upper house of the parliament.
Air India has just borrowed ₹225 crore through a short-term loan facility from domestic lenders to refinance an earlier loan.
Air India’s total debt was Rs. 38,366.39 crores based on preliminary figures for 2019-20. This came after an amount of Rs. 22,064 crores were transferred from the airline to a special vehicle (SPV) operated by Air India Assets Holding Ltd in the 2019-20 period.
As of March 31, 2020, Air India’s total net fixed assets were Rs. 45,863.27 crores, including land and buildings, aircraft fleet and engines, other fixed assets, rights of use and intangible assets.
The government also told the Rajya Sabha that the interest of Air India employees will be safeguarded in accordance with the guidance of Department of Investment and Public Asset Management after divestment.