GoM clears fresh round of funding for Air India
19 July 2011
New Delhi: The Group of Ministers (GoM) set up to look into the affairs of the beleaguered state-owned carrier Air India threw a life-line, howsoever restricted , by offering the cash-strapped carrier more funds. It cleared additional payments to the tune of Rs532 crore for operating VVIP and other emergency flights on behalf of the central government and agreed, in-principle, to additional equity infusion in the carrier of Rs1,200 crore.
The GoM is headed by finance minister Pranab Mukherjee.
After the meeting, Air India CMD Arvind Jadhav told reporters that the payment of Rs532 crore was also meant to finance strategic business units for ground-handling.
Civil aviation minister, Vayalar Ravi, told reporters that AI's requirement being way more than what has been currently cleared, the GoM would meet again next week to discuss other financial issues.
AI is set to default on its bank loan repayments.
The GoM has also asked the finance committee to prepare a note on Air India's turnaround plan.