National passenger carrier Air Indias balance sheet needs to be restructured as part of its financial transformation, Minister of State for Civil Aviation Jayant Sinha said on Thursday.

"Air India's balance sheet has to be restructured and debt reduced," Sinha said while addressing the 96th annual function of the Associated Chambers of Commerce and Industry of India (Assocham) here.

"The other issue is that corporate governance and professional management need to be put in place. Besides it has to be seen how best use can be made of the non-core assets of Air India."

Sinha elaborated that the overall transformation of Air India is being done with a combination of steps which have started yielding results and that the airline has reported operating profits.

"This year again Air India would generate operating profits," the minister said.