Civil Aviation Ministry 'seeks' Rs 3,500 cr to strengthen Air India
This would be in addition to Rs 5,000 crore due from the current year, comprising Rs 4,600 as equity infusion and Rs 400 crore as the interest to be paid on bonds worth Rs 7,400 crore issued this year to banks and financial institutions that have lent money to the national carrier, official sources said.
The government could not give Air India the entire money committed for this year and "we hope they should be able to give it next year", one of the sources said.
During the remaining part of this financial year, Air India expects the government to release Rs 2,000 crore within March 31 as part of the turnaround and restructuring plans, and announced by Finance Minister P Chidambaram in Parliament during the last Winter Session.
Air India was to get infusion of Rs 10,600 crore in the current fiscal but received only Rs 6,000 crore. Last August, the Cabinet Committee on Economic Affairs had approved an equity infusion of Rs 1,200 crore in it.
The Ministry is also seeking Rs 200 crore for the Airports Authority of India and Rs 80 crore for the proposed National Aviation University that would impart training to pilots and air traffic controllers, apart from conducting other related courses.
As part of the turnaround plan cleared by the Cabinet, Air India is