Lok Sabha Question No. 321 (STARRED), answered on 2016-12-08
Subject: Outstanding Loan on Air India
Ministry: CIVIL AVIATION
Asked by: P. KUMAR

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA STARRED NO: : 321 (To be answered QUESTPN on the December 2016)

## OUTSTANDING LOAN ON AIR INIDIA

*321

SHRI P. KUMAR

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) the total outstanding loan on the Air India and the name of the companies/ institutions from whom the said loans have been taken;
- (b) whether the Government proposes to provide financial assistance to revive Air India and if s0, the details thereof;
- (c) whether the said assessment has been done after comprehensive study of the company and if the details thereof;
- (d) the total expenditure incurred by the Air India and other domestic airlines on complimentary/concessional tickets during the last three years and the current year, yearlairline-wise; and
- (e) whether the major reasons of Josses to airlines industry have been ascertained and if s0, the details thereof and the corrective steps taken by the Government in this regard?

## ANSWER

(Shri Ashok Gajapathi Raju Pusapati)

(a) to (e): A statement is laid on the table of the House.

Minister of CIVIL AVIATION

' > `

`

' ` `

.

.

STATEMENT IN REPLY TQ PART (2) TO (e) OF LOK SABHA STARRED QUESTION NO.321 TO BE ANSWERED ON 08.12.2016 REGARDING OUTSTANDING LOAN ON AIR INDIA TABLED BY SHRI P. KUMAR MP

- 0): Thetotal outstanding loans o Air India as on 30th September 2016 are Rs 46570.35 crores, the details of the same are available at Annexure: '
- () Induction of upfront equity of Rs.6,750 Crores,
- (b): In view of the precarious\_financial condition of Air India Govt: approved & Turnaround Plan (TAPY Financial Restructuring Plan (ERP) for Air India in the year 2012 for operational and financial turnaround of Air India  The TAPIFRP envisages equity induction by the Government subject to achievement of certain financial and operationai parameters The TAPIFRP includes budgetary support amounting to Rs 30231 crores spread over 10 years i.e upto FY 2020-21 and alse equity support\_for the payment of principalinterest of the Non Convertible Debentures The financiai support approved under TAPI FRP is as under: Ltds,
- (i) Equity for Cash deficit support of Rs.4,552 crores from FY 2012-13 to FY 2017-18.
- (iv) GOI Guarantee for repayment of Principal amount and payment of crores Preposed to be issued by Air India to the financial institutions, Banks, LIC, EPFO etc
- (iii) Equity for already guaranteed aircraft loan of Rs.18,929 Crores till FY 2021

Air India from the period of FY 2011-12 to the end of November, 2016.

(c): Government took cognizance of the deteriorating financial position of AI induction by the Government and Business and Financial Restructuring Plan in consultation with SBI who were appointed by AI in July, 2009 for the debt restructuring Plan; Air India along with SBI after a series who were appointed as independent Aviation consultants to vet the TAP in terms of assumptions made, submitted its report to the Ministry of Civil Aviation in June;, 2011, The TAPIFRP was considered by a Committee of Group of Officers (GoO) under the Finance Ministry: The of Ministers (GO) acceptcd the recommendations of GoO and the same was approvedey the Government: Caps Caps having Group

- (d): No expenditure is incurred by Air India o complementary/concessional tickets The data regarding expenditure incurred by other domestic airlines are not maintained by the Government

(c): The major\_rcasons for the losses to airline industry include high incidence of taxes on ATF, high ATF prices in previous years, reduced yield due to increase in competition and adverse impact of exchange rate variation due to weakening of the Indian Rupee:

The Government has taken several measures like persuading State Governments to reduce Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), allowing direct import of ATF by Indian carriers as actual users, permitting foreign airlines to participate 49% in the equity of scheduled air transport under and tax concession for parts of aircraft and testing equipment for third party maintenance, repair and overhaul of civil aircraft. upto taking

'

.

'`

The total outstanding loans on Air India a8 on 30" September; 2016

| SL No.                              | Name of BankfInstitution                                                        | Amount of Loan (Rs in Crores)   |
|-------------------------------------|---------------------------------------------------------------------------------|---------------------------------|
| (A)                                 | Aircraft Loans                                                                  |                                 |
| i)                                  | EDC Bank                                                                        | 24.13                           |
|                                     | KFW Bank                                                                        | 3108.55                         |
|                                     | ICICI Bank                                                                      | 5500.00                         |
|                                     | Standard Chartered Bank                                                         | 1811.26                         |
|                                     | Citibank                                                                        | 2223.78                         |
|                                     | JP Morgan Chase                                                                 | 2653.68                         |
| vii)                                | Deutsche Bank                                                                   | 550.49                          |
| Sub-Total (A                        | Sub-Total (A                                                                    | 15871.89                        |
|                                     | Debentures Issued to Life Insurance Co and Employee Provident Fund Organization | 7400.00                         |
|                                     | Other Bank Loans Details are attached as Appendix)                              | 23298.46                        |
| GRAND TOTAL OFLOANS AS ON 30.9.2016 | GRAND TOTAL OFLOANS AS ON 30.9.2016                                             | 46570.35                        |

## Loan Position as on 30/09/2016- As per Air India Ltd.

| SI NO_   | Bankwise Summary   | Bankwise Summary            | Approx: Total INR (in Crs)   |
|----------|--------------------|-----------------------------|------------------------------|
| 1        | ALLAHBAD           | Allahabad Bank              | 667.39                       |
| 2        | ANDHRA             | Andhra Bank                 | 439.95                       |
| 3        | BOB                | BBank of Baroda             | 1981.42                      |
| 4        | BOI                | Bank of India               | 2191.55                      |
| 5        | CANARA             | Canara Bank                 | 1309.76                      |
| 6        | Central Bk         | Central Bank of India (CBI) | 1176.37                      |
| 7        | CITI-ECB           | Citi BANK                   | 1931.20                      |
| 8        | CORPN              | Corporation Bank            | 956.81                       |
|          | DENA               | Dena Bank                   | 332.40                       |
| 10       | FEDERAL            | Federal Bank                | 270.55                       |
| 11       | HDFC               | HDFC Bank                   | 2.48                         |
| 12       | IDBI               | IDBI Bank                   | 551.21                       |
| 13       | INDIAN BK          | Indian Bank                 | 551.54                       |
| 14       | IOB                | Indian Overseas Bank        | 884.66                       |
| 15       | INDUSIND           | Induslnc Bank               | 4o0.00                       |
| 16       | OBC                | Oriental Bark of Comrerce   | 1125.37                      |
| 17       | PNB                | Punjab Wational Bank        | 1581.43                      |
| 18       |                    | Punjab Sind Bank            | 549.16                       |
| 19       | SBI                | State Bank of India         | 1125.19                      |
| 20       | SCB                | Stand Chartered Bank        | 2632.13                      |
| 21       | SYND               | Syndicate Bank              | 809.44                       |
| 22       | UCO                | UCO Bank                    | 735.10                       |
| 23       | UNION              | Union Bank                  | 240.00                       |
| 24       | UBI                | United Bank 0f India        | 453.35                       |
| 25       | VIJAYA             | Vijaya Bank                 |                              |
|          |                    | TOTAL                       | 23298.46                     |