New Delhi — India plans to exclude more than half of the $7.6bn debt owed by the struggling national airline to help burnish its appeal as Prime Minister Narendra Modi presses ahead with a sale, people with knowledge of the matter said. The government proposes to transfer all of Air India’s nonaviation assets and short-term loans of as much as 300-billion rupees ($4.7bn) to a separate company, readying the airline for prospective buyers, the people said, asking not to be identified discussing confidential information. Authorities aim to kick off the bidding process before March 31, they said. Such a move would mean the government absorbing the money-losing firm’s working capital loans, real estate from Tokyo to London and two hotels. The buyer will be left with aviation-related assets and about 200-billion rupees of loans borrowed to acquire aircraft, the people said. Finance Ministry spokesman DS Malik did not respond to calls seeking comment. A successful sale of Air India is cruc...
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