The civil aviation ministry would soon circulate a Cabinet note on the revival plans of state-owned Air India, seeking an upfront equity infusion of R6,750 crore and another round of cash support of R3,800 crore later. Official sources, however, said that the government would not provide any fund in the current fiscal.
“The GoM has accepted the recommendations of committee of secretaries, which seeks capital infusion and support to the carrier for next 10 years,” said the official. The panel of secretaries has also sought induction of aircraft and the review of the bleeding carrier in 2015.
The execution of Air India’s turnaround plan would be closely monitored by an oversight committee which would have representatives from finance ministry and banks. Since banks, led by State Bank of India, have agreed to restructure loans they want to oversee the airline’s operational and financial progress.