IANS | 20 Mar, 2019
The government is likely to turn to public sector banks to rescue Jet
Airways in an apparent bid to avert thousands of job losses weeks
before the general election.
Sources said the government wants
National Investment and Infrastructure Fund (NIIF), where it owns 49 per
cent stake and whose mandate is to invest in stalled and new
infrastructure projects, to buy a stake in Jet to save the cash-strapped
airline.
Saddled with more than Rs 8,000 crore of debt, Jet is
struggling even to pay salaries as it defaulted on payments to banks
and aircraft lessors some of whom have reportedly begun to terminate
lease deals.
The aviation sector employs close to 10 lakh people.
The
Finance Ministry has been in touch with banks led by State Bank of
India (SBI) on Jet's financial health . If banks agree to government
proposals, then state-run banks including SBI and Punjab National Bank
(PNB) as well as NIIF would together may own at least a third of the
airline until they find a new buyer.
Currently, Abu Dhabi's Etihad Airways is Jet's largest shareholder with a 24 per cent stake.
