The Congress on Wednesday said the government intended to bring a bailout package for the cash-strapped Jet Airways - partly owned by foreign investors - using Indian tax payers' money.

Congress spokesperson Randeep Surjewala told the media that the Modi government had asked public sector banks - State Bank of India (SBI) and Punjab National Bank (PNB) - to waive the debt on the airliner totalling Rs 8,500 crore by taking an equity of Rs 1.

"Naresh Goyal, who is a London-based NRI, owns 51 per cent stakes while Etihad Airways has 24 per cent stake. It means the 75 per cent ownership is with an NRI and a foreign company," said Surjewala.

"Why is the Modi government giving a 'bailout package' to a bankrupt corporate entity like Jet Airways owned by foreign investors, out of public money, but not to India's debt-ridden farmers?"

"The PMO (Prime Minister's office) has issued two orders. It has asked the SBI and other PSU banks to waive the loan by converting it into equity of Rs 1. Also, it is going to pay Rs 150 for every share to Etihad.

"Will the Modi government now save every defaulting crony capitalist out of public funds?"

--IANS

spk/mr

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)