Government Seeks to Submit Year’s Account from Debtor Air India

The Civil Aviation Ministry has asked Air India to prepare an accounting for the financial year 2018-19.
Government Seeks to Submit Year’s Account from Debtor Air India

Ministry of Civil Aviation asked the government aviation company AI to prepare an accounting statement for the financial year 2018-19. AI has been given time till the end of June. Ministry has given this directive after the decision of the Prime Minister's Office to speed up the process of disinvestment of three units of Air India. Let us tell you that Air India has a debt of about 55 thousand crore rupees.


In a letter written to Air India chairman Ashwani Lohani, Civil Aviation Secretary Pradeep Singh Khurla said, "There was a meeting on April 1 under the chairmanship of Principal Secretary to the Prime Minister, in which Air India Air Transport Services Limited, Air India It was decided to accelerate the process of disinvestment of Engineering Services Limited and Airline Allied Services Limited. "

He said that in order to carry forward the disinvestment process of Air India and subsidiaries, they will need audited financial statements of 2018-19. "Therefore, I request you to please finalize the financial results of Air India and its subsidiaries in 2018-19 by the end of June."


Let us tell you that a committee headed by Finance Minister Arun Jaitley decided to discontinue it for some time in June after the failure of the disinvestment of Air India in May 2018. The committee then decided to reduce the debt by investing in the company and selling land and other properties.

The government had approved the setting up of a special purpose company (SPV) in the Cabinet meeting of this year to speed up the disinvestment process of Air India. It was named – Air India Asset Holding Ltd. This body was transferred to Air India's Rs 29,464 crore loan and its four subsidiaries. Four subsidiaries include AIATSL, AASL, AIESL and Hotel Corporation of India (HCI).

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