Air India needs Rs4,500 crore funding: Patel

Air India would need funds to the tune of Rs4,500 crore to bail itself out of the financial crisis and the government proposes to invest Rs2,500 crore as fresh equity in the national carrier, civil aviation minister Praful Patel said today.

"The government needs to put in around Rs2,500 crore of equity, which can be repaid in future once partial disinvestment takes place. You can look at another couple of thousand crore by way of soft loans, which is again repayable," Patel told NDTV channel.

Replying to a question in the Lok Sabha, the minister, however, ruled out divestments of government stakes in Air India and the Airport Authority of India. He also said the government is not considering an Initial Public Offer (IPO) at this stage.

Air India is also reported to be in the procesxof restructuring its board of directors with the induction of eminent personalities such as Ratan Tata, N R Narayan Murthy and Sam Pitroda.

He said it would be a great thing if these people are willing to contribute for a public cause - bringing the national carrier back on track. Patel said "they would be independent directors".

Nothing has been finalised yet, he said, adding that the government would come out with the details once the plans are finalised.