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Government looks to raise Rs 10,000 crore by selling Air India assets, says report

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The government is planning to raise up to Rs 10,000 crore by selling national carrier Air India's subsidiaries and other assets to repay a part of the national carrier's Rs 29,000 crore debt, The Economic Times reported.

Government looks to raise Rs 10,000 crore by selling Air India assets, says report
The government is planning to raise up to Rs 10,000 crore by selling national carrier Air India's subsidiaries and other assets to repay a part of the national carrier's Rs 29,000 crore debt, The Economic Times reported.
“The government is estimating an amount of Rs 10,000 crore from the sale and divestments. The money is to be used to reduce the debt from the current Rs 29,000 crore,” the report quoted a senior government official as saying.
The government is looking to raise the money through the sale of Air India's profit-making entities which include ground handling, engineering and its regional airline subsidiary Alliance Air. Air India building in Nariman Point, Mumbai, is valued at Rs 1,400 crore.
After the government failed to find any buyer for 76 percent of Air India's stake last year, it transferred Rs 29,000 crore of its total debt of Rs 54,000 to into a special purpose vehicle – Air India Asset Holdings Ltd.
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