Union Budget 2022: Govt Dispenses Rs 51,971 Crore to Settle Air India's Dues

Tata Sons had emerged as the winning bidder for state-run airline at a bid of Rs 18,000 crore on 8 October.

The government allocated Rs 51,971 crore for settling outstanding guaranteed liabilities and other pecuniary dues fo Air India, Finance Minister Nirmala Sitharaman announced while giving the Budget speech on Tuesday, 1 February.

(Photo: The Quint)

The government has allocated Rs 51,971 crore for settling outstanding guaranteed liabilities and other pecuniary dues for Air India, Finance Minister Nirmala Sitharaman announced while delivering her annual Budget speech on Tuesday, 1 February.

The outlay for Air India has been accounted for in the recently revised total expenditure estimates from the previous financial year.

“The Revised Estimate of capital expenditure is Rs 6.03 lakh crore. This includes an amount of Rs 51,971 crore towards (the) settlement of outstanding guaranteed liabilities of Air India and its other sundry commitments," The Indian Express quoted the FM as saying on Tuesday.

The Air India divestment process had reached its completion on 27 January, 2022 after Tata Sons won the bid for the state-run carrier in October 2021, acquiring 100 per cent stake in the airline.

The winning bid of Rs 18,000 crore comprised of taking over of Rs 15,300 crore of the debt incurred by the airline; and the remaining Rs 2,700 crore was to be paid to the government directly.

Air India had accumulated losses worth Rs 83,916 crore as of March 2021 and a total debt of Rs 61,562 crore at the end of 31 August – delaying the government's disinvestment process.

(With inputs from The Indian Express.)