Air India to get another Rs2,000-crore equity infusion
07 December 2012
The government proposes to infuse an additional Rs2,000 crore equity in Air India as part of the state-run airline's financial restructuring.
Tabling the supplementary demands for grants in the Lok Sabha, finance minister P Chidambaram said the government has earmarked Rs2,000 crore for equity infusion in Air India as part of its financial restructuring and turnaround plan.
Speaking to reporters after the Lok Sabha session, Chidambaram said the government hopes to accommodate the funding with no additional borrowing in the remaining part of the current fiscal year.
"Rs28,500 crore of petroleum subsidy, about Rs2,000 crore for infusion of equity in Air India and Rs300 odd crore for some small items. So this amount we think we can accommodate within the present borrowing limit," Chidambaram said.
"We don't think at this moment we need to borrow anything more than what is indicated," he added.
The government had in its budget for the 2012-13 fiscal proposed to infuse Rs4,000 crore in the cash-strapped carrier.
An SBI-led consortium of 19 banks had approved the financial restructuring plan (FRP), which includes debt restructuring of Rs18,000 crore by the banks and a committed equity infusion by the government.