SpiceJet catches PM Narendra Modi’s attention
SpiceJet had recently told the government that it was on the verge of suspension of operations
By : DC Correspondent
Update: 2014-12-23 06:01 GMT
New Delhi: Prime Minister Narendra Modi is understood to have expressed concern over the financial deterioration of private carrier SpiceJet, which was on the verge of closure till recently, and is believed to have asked for details on the situation in the last Cabinet meeting, government sources have indicated.
Civil aviation minister Ashok Gajapathi Raju then explained the details of the issue at the Cabinet meeting and outlined the measures that the government was taking for the welfare of the aviation industry.
The government also informed Parliament on Monday that SpiceJet owed dues of Rs 742 crore to foreign vendors (lessors, maintenance and repair organisations) and Rs 488 crore to local vendors (service tax, income tax, oil companies, airport operators etc) as on December 10. The dues had risen sharply compared to even on December 5.
Former promoter of the airline Ajay Singh, who is expected to head a group of investors to bail out the airline and help it back on the path to recovery, is apparently planning to rope in a US-based investment firm.
There are about two US-based investment firms that are serious about investing in the cash-strapped airline, sources said. SpiceJet is also understood to have discussed its revival plan with the aviation authorities.
Sources said Mr Singh has asked for some more time for the investments to be made and the rescue process may be slightly delayed by about two to three weeks due to the current Christmas and New Year vacation.
It may be recalled that SpiceJet had recently told the government that it was on the verge of suspension of operations and had added that the “Brand India” image would be affected if this were to happen.