The Airports Authority of India (AAI) has requested the government to exempt it from mandatory dividend payment for the financial year 2021-22.
The authority has sought this exemption instead of waiving the dues of Air India.
The public sector AAI is incurring losses due to the outbreak of the corona virus epidemic and is expected to incur a loss of Rs 800-900 crore in the financial year 2021-22.
AAI President Sanjeev Kumar said the company has shown good improvement and expects losses to come down in the last financial year. The financial results of the company may come next month.
Kumar said AAI has settled Air India’s dues of around Rs 2,000 crore. Under the agreement, 50 per cent of the total dues were waived off. In this way AAI got Rs 1,000 crore.
Air India was acquired by Tata in the last financial year.
Kumar said, “AAI has requested the government to waive the mandatory dividend that is paid every year, instead of waiving the dues of Air India. DIPAM (Department of Investment and Public Asset Management) has given us in-principle approval for the proposal.”
Under the existing rules, AAI is entitled to an annual dividend of five per cent of its net worth or 30 per cent of its annual profit, whichever is higher. as to be given.
Since, AAI is currently in loss, it will have to pay an amount of five per cent of the net worth of the previous financial year.