A Finance Minister Pranab Mukherjeeled Group of Ministers (GoM) on Friday called for the Reserve Bank of India's (RBI) views on state-run Air India's (AI)
financial restructuring plan, which requires an additional
equity infusion of Rs 6,600 crore, and the carrier's plan of acquiring 27 Boeing 787 Dreamliner planes.
Civil aviation minister
Vayalar Ravi said the matter would be referred to the Union Cabinet after the RBI gives its views on the debt restructuring plan for the ailing national carrier. The RBI is been asked to submit its report within a week.
The carrier, which was earlier censured by the RBI for incurring unnecessary costs, has a debt burden of around Rs 46,000 crore ($9.5 billion).
"A report on (AI's) debt restructuring prepared by the Committee of Officers will be reviewed by the RBI within a week. Only after that will any decision be taken," Ravi said. Once the RBI reviews the report by the Committee of Officers, the issues pertaining to equity infusion and also the acquisition of Dreamliners would be tabled before the Cabinet, Ravi said.
OPINION:
The real reason behind Air India's sorry state The civil aviation ministry has already moved a proposal for additional equity infusion of Rs 6,600 crore for the ailing carrier to enable the airline to clear its massive dues. The government has already infused equity worth Rs 2,000 crore into Air India over the last two years. The debt-ridden carrier has outstanding loans and dues of Rs 67,520 crore, out of which the working capital loan is Rs 21,200 crore, long-term loan on fleet acquisition is Rs 22,000 crore, vendor dues stand at Rs 4,600 crore and the airline has an accumulated loss of Rs 20,320 crore, latest official figures showed.
In August the Air India board had decided to go ahead with the acquisition of Boeing 787s and sought government nod for it. According to the original 2005 order, the airline wanted to acquire 27 aircraft. The minister had earlier said the airline did not have the money to go for so many aircraft at present.
The GoM has also extended the credit period on jet fuel payments for AI from two months to three months.
Courtesy: Mail Today
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