The Ministry of Aviation has refused to provide equity support to the divested Air India, and the government has rejected the national airline’s application for funds.
Air India previously received some funds as part of the equity support for financial losses happened due to COVID-19, According to The Economic Times.
However, we do not independently verify the story.
The Ministry of Aviation typically forwards such requests to the Treasury, but not this time, the report said.
In the second attempt to privatize the national airline, the government offered all of its 100 percent for sale. The current offer period ends on August 31, which was extended due to the COVID 19 outbreak.
The government took over 60 percent of Air India’s debt to make it more attractive to bidders.
“In April, May, and June, Air India raised over 900 billion rupees in working capital loans guaranteed by the government. The airline also received 500 billion rupees from the government in exchange for the money the government owed VVIP flights, “said an official of the publication.
Domestic flights were suspended for two months due to the nationwide ban, and international flights continue to be suspended. Air India currently offers some domestic and return flights.