The government gave 51,971 crores to repay Air India's debt

After calling off Air India's high-profile disinvestment process, the government decided to pay off the airline's debt as well. In the Union Budget 2022-23, the government allocated an additional Rs 51,971 crore to settle Air India's outstanding liabilities and its other "miscellaneous commitments".

During the budget speech, Nirmala Sitharaman said, "As against the total expenditure of Rs 34.83 lakh crore estimated in BE 2021-22, the Revised Estimate is Rs 37.70 lakh crore. The Revised Estimate of Capital Expenditure is Rs 6.03 lakh crore. In this Air India 51,971 crore for settlement of outstanding guarantee liability of Rs 51,971

The Tata group had acquired 100 per cent stake in Air India in a deal worth Rs 18,000 crore. Of this, Rs 15,300 crore was taken as loan and Rs 2,700 crore was given to the Center in cash.

Air India had a loss of Rs 83,916 crore as of March 2021 and a total debt of Rs 61,562 crore as of August 31, delaying the government's disinvestment process. Selling the loss-making Air India for years was one of the government's disinvestment plans for a long time.