Finance Minister Pranab Mukherjee-led Group of Ministers (GoM) is expected to arrive at a decision early this week to infuse Rs 1,200 crore as equity in the beleaguered national carrier,
Air India . The carrier has accumulated losses of over Rs 14,000 crore in the last four financial years and a total debt of over Rs 40,000 crore, including Rs 18,000 crore of working capital loans.
The airline has also sought equity infusion of Rs 2,000 crore from the government in the next financial year, to help repay its massive debts. According to top officials, the airlines had also mooted a proposal for an infusion of Rs 10,000 crore.
The proposal for infusion of Rs 2,000 crore in the loss-making carrier was examined by the Committee of Secretaries, led by Cabinet secretary K. M. Chandrasekhar.
Of Rs 2,000 crore planned to be given to the airline, Rs 800 crore was granted in February this year and Rs 1,200 crore is expected to be used to settle outstanding dues and not to enhance the airline's equity base.
Centre had also asked the airline to cut costs and strengthen its bottomline. The airline has recently sought approval from the Reserve Bank of India to convert a major portion of its Rs 18,000 crore of working capital loans into term loans with a moratorium of 2-3 years on repayment of principal as part of a financial restructuring plan.
Courtesy: Mail Today 
Special 
