SpiceJet owes over Rs1,200 cr in unpaid debts, Parliament told

Prime Minister Narendra Modi is directly concerned over the financial deterioration of private carrier SpiceJet, which is on the verge of closure unless it gets a fresh fund infusion, and asked for details of the situation in the last cabinet meeting on Friday, according to civil aviation minister Ashok Gajapathi Raju.

A report citing sources said Raju 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 Rs742 crore to foreign vendors (lessors, maintenance and repair organisations) and Rs488 crore to Indian vendors (service tax, income tax, oil companies, airport operators etc) as of 10 December. The dues had risen sharply compared to even five days earlier.

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.