Lok Sabha Question No. 1489 (UNSTARRED), answered on 2018-07-26
Subject: Sale of Air India
Ministry: CIVIL AVIATION
Asked by: BHARATENDRA SINGH, KIRIT SOMAIYA, PRASUN BANERJEE, SAUGATA ROY, ELUMALAI VELLAIGOUNDER, VASANTHI M., MALLIKARJUN  KHARGE, RAVINDRA VISHWANATH GAIKWAD, SISIR KUMAR ADHIKARI, ADVOCATE NARENDRA KESHAV SAWAIKAR

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

UNSTARRED QUESTION NO. : 1489

## LOK SABHA

(To be answered on the 26th July 2018)

## SALE OF AIR INDIA

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1489\_

KUNWAR BHARATENDRA `

DR KIRIT SOMAIYA

SHRI PRASUN BANERJEE

PROF SAUGATA ROY

. . `

SHRIMATI VASANTHI M

' PROF RAVINDRA VISHWANATH GAIKWAD

SHRI SISIR KUMAR ADHIKARI

ADV. NARENDRA KESHA V SAWAIKAR

Will the Minister of CIVIL AVIATION

.

` ,`

be pleased to state:-

- (a) whether the Government has undertaken any revision of terms of sale of Air India and if s0, the details thereof;
- (c) whether the Air India has any shortage of funds to pay the salary of its staff and if s0, the details thereof;
- (b) whether the Government has constituted a committee to work out the modalities to prepare a bailout package for Air India and if so, the details thereof;
- (d) the total assets and liabilities of Air India as of now;
- (f) the steps taken by the Government to bailout Air India including details of funds infused by the Government during the last three years and the currents year, year-wise?
- (e) whether Air India would be split into five parts with four of them offered for sale while the fifth would be an SPV that would remain with the Government and if s0, the details thereof; and being

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Shri Jayant Sinha)

- (a) The Government remains committed to the disinvestment of Air India; In this regard, the Air India Specific Alternative Mechanism (AISAM) has decided as follows:
- (ii) to undertake near and medium term efforts to capture operational efficiencies and to improve the performance of Air India
- (i) In view of volatiie crude prices and adverse fluctuations in exchange rates; the present environment is not conducive to stimulate interest amongst investors for strategic disinvestment of Air India in immediate near future: The issue would be revisited once global economic indicators including oil and forex conditions stabilize prices
- (iii) to monetise non-core land and building assets
- (iv) \_ to separately decide the contours of the mode %f disposal %f the subsidiaries viz. Air India Engineering Services Limited (AIESL), Air India Air Transport Services Limited (AIATSL) and Airline Allied Services Limited (AASL):
- (b) & (0) In order to help Air India in mitigating its continuing losses and to take back on the of profitability, the Government has already approved and implemented a Turn Around Plan (TAP) and Financial Restructuring Plan (FRP) of Air India in 2012 in terms of which, all Government Guaranteed loans and interests thereon are being by the Government by way 0f equity infusion into Air India: Similarly, Financial  Restructuring Plan (FRP) has also been implemented by means of which, high cost working capital loans have been converted into long term debt carrying lesser rates of interest so as to reduce the financial burden on Air India: path paid

The TAPIFRP includes budgetary support amounting to Rs: 30231 crore spread over 10 years i.e: upto FY 2020-21 and also equity support for the payment of principallinterest of the Non-Convertible Debentures (NCD): Air India has received an equity infusion of Rs. 27195.21\_ crore till date: The details 0f the Equity infused by the Government in Air India during the last three years and the current year are as follows:

| Year    | Amount (in crore)   |
|---------|---------------------|
|         | 2015-16 Rs. 3300.00 |
| 2016-17 | Rs. 2465.21 .       |
| 2017-18 |                     |
| 2018-19 |                     |

Rs. 650.00 (upto June, 2018)

- (c) Salaries have been to all employees including the salary for the month of June, 2018 which was on 2nd July, 2018\_ There was a short delay in the payment of Salaries for 2018. However, the same were subsequently. paid paid paid May,
- (d) The details of the major items of Assets and liabilities of Air India as per the last Audited Accounts of FY 2016-17 of the company are at Annexure:
- (e) Answer of no.(a) may be referred to. point

## Annexure

The details of the major items of Assets and liabilities of Air India Ltd as per the last Audited Accounts of FY 2016-17 of the company are as follows:

(Rs: in crore)

| Liabilities                                         |   Amount | Assets                                                                                                                        |   Amount |
|-----------------------------------------------------|----------|-------------------------------------------------------------------------------------------------------------------------------|----------|
| Outstanding Loans/ Debts                            |  48447.4 | Net Fixed Assets                                                                                                              |  29792.6 |
| Current Liabilities (including Term Provisions Long |  19649.8 | Current Assets(including Non-current Investments; Long Terms Loans & Advances/Trade Receivables and other Non- Current Assets |  16717.7 |

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