GoI to clear AI’s debts in time-bound manner
15 Jul 2011
New Delhi: The Government of India will clear hugely burdened Air India's debts in a time-bound manner. The badly-struggling carrier has run up debts of Rs40,000 crore.
According to Nasim Zaidi, secretary, ministry of civil aviation, "The government is committed to Air India. We are bound by that commitment to revive Air India." He was speaking to reports on the sidelines of an industry summit.
"Air India's debts would be cleared in a time-bound manner," Zaidi said without specifying any time frame.
The merged carrier has run up massive debts through its aircraft acquisition programme, loans taken to fund operations and sums owed to vendors of various kinds.
Currently, the airline is seeking fresh equity infusion of Rs1,200 crore. It has already received cash infusion of Rs4,000 crore in the previous two fiscals.
The airline has been promised another tranche of Rs2,000 crore this year in the federal budget.
