Modi Weighs Privatizing Indebted State Carrier Air India

Indian Prime Minister Narendra Modi is considering a proposal to privatize state-run Air India Ltd., possibly asking the buyer to absorb loans of about 200 billion rupees ($3.1 billion) linked to aircraft purchases, a person with direct knowledge of the matter said.

The deliberations follow recommendations by a government panel for the sale of the money-losing carrier that has nearly $8 billion in debt, the person said, asking not to be identified because the discussions are private. As for the rest of the flag carrier’s debt, the government has yet to decide whether to write off or reorganize it, the person said.