Ministry seeks Rs2,000 crore more for Air India equity infusion
27 Dec 2010
The ministry of civil aviation has sought Rs2,000 crore additional equity infusion in ailing state-run airliner Air India in the coming financial year, over and above the Rs1,200 crore current funding.
Speaking on the sidelines of a function to induct a seaplane to Pawan Hans Helicopters, civil aviation minister Praful Patel said the Rs1,200 crore equity infusion is expected soon.
"We have asked from the government further equity infusion of Rs2,000 crore to be provided in the coming year's budget," he added.
He said the group of ministers is seized of the need to nursing back the national carrier to health and that he was hopeful of the government looking at the proposal "objectively."
He said Air India should compete in the market and live up to the people's expectations at a time when private airlines are making a killing. He said while the national carrier has met some performance parameters, a lot more needs to be achieved.
He said Air India is in a debt restructuring mode in order to emerge competitive. "The exercise will help Air India reduce the interest on loans and also enable moratorium on the repayment of loans," he said.
Meanwhile, he said, everything is being done to bring back airline operations in Delhi back to normal where the continuing foggy conditions have affected airlines' operations.
