Outlay for Air India cut by 40 per cent

New Delhi: The delay in the deliveries of Boeing 787 Dreamliners to Air India has led the finance ministry to cut the targeted Budget plan outlay for the public sector airlines by close to 40 per cent.
However, the investment plan for the Airports Authority of India (AAI) has increased by around 72 per cent from Rs 1,961.41 crore for the current fiscal to Rs 3,377.10 crore estimated for next year which will fund the modernisation of the Kolkata and Chennai airports among others.
In 2008-09, the National Aviation Company of India Ltd (NACIL), the government-owned company formed after the merger of Air India and Indian Airlines, was supposed to raise Rs 9,572.42 crore from internal resources and external commercial borrowings.
However, with the deliveries of the Boeing Dreamliners getting delayed for this year Rs 3,785.94 crore was deducted from the investment outlay plan. In 2008-09, the investment plan is now being pegged at Rs 5,786.48 crore.
"According to the Eleventh Plan, Rs 12,000 crore is to be spent by the AAI for the upgrade of the airports, which makes an average of Rs 3,000 crore per year. Hence the investment plan has increased," said KN Shrivastava, joint secretary, Ministry of Civil Aviation.
03/02/08 Business Standard

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Categories: Air India - International Mar 2008, NACIL Mar 2008