Talks on AI revival package at advanced stage, says Sinha

The government is working on a revival package for state-owned Air India and discussions for the same are at an advanced stage, Minister of State for Civil Aviation Jayant Sinha said on Wednesday.

He, however, didn't give any timeline when the package will be announced. The civil aviation ministry was in discussions with the finance ministry for a Rs 11,000 crore bailout package for Air India to clean up the airline's balance sheet and make it attractive for investors.

Economic Affairs Secretary Subhash Chandra Garg also said on Wednesday that the government was working on restructuring Air India's finances to ensure that the airline has "sustainable debt". "What government is doing in Air India is to restructure the finance of Air India in a way that the national carrier is there with a sustainable level of debt. Whatever is the excess unsustainable debt (it) will be taken out... Air India with sustainable debt will work as a viable entity," Garg said.

Further, he said that the airline's unsustainable debt would have to be placed in some special purpose vehicle. The government had failed to solicit even a single expression of interest for strategic divestment of the national carrier. Sinha said the aviation ministry had asked the finance ministry to bring aviation turbine fuel under goods and service tax. However, the final decision on the issue will be taken by the goods and services tax council.