Budget 2022: Govt allocates additional Rs 51,971 crore to settle Air India’s debt

News Network
February 1, 2022

New Delhi, Feb 1: Having closed the most high-profile disinvestment process of Air India, the government also decided to retire the airline’s debt that it transferred to the Special Purpose Vehicle (SPV). In the Union Budget 2022-23, the government allocated an additional Rs 51,971 crore towards the settlement of outstanding guaranteed liabilities of Air India and its other sundry commitments.

This amount has been accounted in the revised estimates of total expenditure in 2021-22.

“As against a total expenditure of Rs 34.83 lakh crore projected in the Budget Estimates 2021-22, the Revised Estimate is Rs 37.70 lakh crore. The Revised Estimate of capital expenditure is Rs 6.03 lakh crore. This includes an amount of Rs 51,971 crore towards settlement of outstanding guaranteed liabilities of Air India and its other sundry commitments,” Finance Minister Nirmala Sitharaman said during the Budget speech.

The Tata Group acquired 100 percent stake in the airline, in a deal that closed on January 27, for Rs 18,000 crore. Of this, Rs 15,300 crore was taken on as debt, and Rs 2,700 crore was paid to the Centre in cash. For servicing the high-cost debt that it has taken on with the airline, a consortium led by the State Bank of India has approved a plan to provide long-term debt to the Tata Group.

As per the revised estimates of 2021-22, the SPV — AI Asset Holding Ltd — has received Rs 62,057 crore, of which Rs 36,254 crore was infused as equity for repayment of past government-guaranteed borrowings of Air India; Rs 12,357 crore for repayment of borrowings for sale and leaseback rentals for aircraft; and Rs 13,446 crore for repayment of other dues and liabilities.

The huge amount of debt carried by Air India resulting from years of loss-making operations was one of the key hindrances in the past disinvestment attempts by the government. During the last disinvestment process, the government tweaked the bidding conditions to allow potential bidders to place a bid at the enterprise value — meaning they could decide the quantum of debt they would want to take on.

Also, upon finalising the decision to sell its stake in Air India, the government, over the last two years, had stopped infusing funds into the airline and was instead guaranteeing its loans.

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coastaldigest.com news network
November 29,2025

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Mangaluru, Nov 29: Around 12,500 healthcare students from Medical, Dental, AYUSH, Pharmacy, Nursing, Physiotherapy and Allied Health Sciences colleges of Dakshina Kannada, affiliated to Rajiv Gandhi University of Health Sciences (RGUHS), took part in a massive walkathon to promote awareness on Organ Donation and Nasha Mukth Bharat.

The inaugural ceremony was held at Mangala Stadium. Dr Bhagavan B C, Hon’ble Vice-Chancellor of RGUHS, delivered the welcome address. The walkathon was flagged off by Shri U T Khader, Hon’ble Speaker of the Karnataka Legislative Assembly, and presided over by Shri Dinesh Gundu Rao, Hon’ble Minister for Health, Family Welfare and Dakshina Kannada District In-charge. Dakshina Kannada MP Shri Brijesh Chowta also addressed the students.

Music director Guru Kiran, MLA Dr Bharat Shetty (Mangalore North), Police Commissioner Shri Sudheer Kumar Reddy, Shri Manjunath Bhandary and Shri Harish Kumar were among those present.

Institution heads including Dr Haji U K Monu (Kanachur Colleges), Dr Shantharam Shetty (Tejaswini College), Dr Bhaskar Shetty (City Group of Colleges), Mr Abdul Rahiman (Kanachur Institute of Medical Sciences), and the District Health Officer, Mangalore, also participated.

The vote of thanks was delivered by Prof U T Ifthikar Fareed, Syndicate Member, RGUHS.

The event was organised by Dr U T Ifthikar Ali and Dr Shiva Sharan (Syndicate Members), Prof Vaishali (Senate Member), Prof Mohammad Suhail (Chairman, BOS Physiotherapy), Dr Sharan Shetty (Former Senate Member), along with principals and faculty of various colleges.

Students marched from Mangala Stadium to Karavali Grounds via MCC and Lalbagh signal. The event set a record as one of the largest gatherings of healthcare students for a social cause in the RGUHS Dakshina Kannada Zone.

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News Network
November 26,2025

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Bengaluru, Nov 26: Karnataka is taking its first concrete steps towards lifting a three-decade-old ban on student elections in colleges and universities. Deputy Chief Minister D.K. Shivakumar announced Wednesday that the state government will form a small committee to study the reintroduction of campus polls, a practice halted in 1989 following incidents of violence.

Speaking at a 'Constitution Day' event organised by the Karnataka Congress, Mr. Shivakumar underscored the move's aim: nurturing new political leadership from the grassroots.

"Recently, (Leader of the Opposition in Lok Sabha) Rahul Gandhi wrote a letter to me and Chief Minister (Siddaramaiah) asking us to think about restarting student elections," Shivakumar stated. "I'm announcing today that we'll form a small committee and seek a report on this."

Student elections were banned in Karnataka in 1989, largely due to concerns over violence and the infiltration of political party affiliates into campus life. The ban effectively extinguished vibrant student bodies and the pipeline of young leaders they often produced.

Mr. Shivakumar, who also serves as the Karnataka Congress president, said that former student leaders will be consulted to "study the pros and cons" of the re-introduction.

Acknowledging the history of the ban, he added, "There were many criminal activities taking place back then. We’ll see how we can conduct (student) elections by regulating such criminal activities."

The Deputy CM reminisced about his own journey, which began on campus. He recalled his political activism at Sri Jagadguru Renukacharya College leading to his first Assembly ticket in 1985 at the age of 23. "That's how student leadership was at the time. Such leadership has gone today. College elections have stopped," he lamented, adding that for many, college elections were "like a big movement" where leaders were forged.

The move, driven by the Congress high command's push to cultivate young talent, will face scrutiny from academics and university authorities who have, in the past, expressed concern that the return of polls could disrupt the peaceful academic environment and turn campuses into political battlegrounds.

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News Network
November 22,2025

Mangaluru: Police Commissioner Sudheer Kumar Reddy C H has warned of strict action against individuals spreading rumours and attempting to create insecurity within the Muslim community and fuel hatred between Hindus and Muslims through social media.

Referring to a recent social media post alleging that police personnel had entered a masjid premises to check whether beef was being cooked, the commissioner said miscreants were attempting to push their communal agenda. 

“A group of people, both from Mangaluru and abroad, are trying hard to spread rumours. For the past 10 days, they have been attempting to rake up old issues, highlight routine matters as controversies, or fabricate news altogether,” he said.

He reiterated that any such attempts to disturb communal harmony would invite legal action. “Cases will be registered and the accused will be brought to book,” he stated.

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