Stuck on the IPO route, AI seeks Rs 1k-cr govt funds

NEW DELHI: The civil aviation ministry is considering a capital infusion of Rs 1,000 crore to enable Air India to take on the growing competition and face heat on high oil prices. The national carrier has been asked to revise a proposal, which was submitted recently, and the finance ministry would be approached with an improved capital infusion plan.
“We had received a proposal from Air India for budgetary support of Rs 1,000 crore. The proposal though didn’t contain details like the basis for the government support. We have asked them to work out the details and explain the budgetary requirement,” a government official said.
National Aviation Company of India (Nacil), the entity created by the merger of Air India and Indian Airlines, was supposed to raise funds through an IPO. However, the issue is unlikely to happen in the near future due to market conditions.
12/05/08 Nirbhay Kumar/Economic Times

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Categories: NACIL May 2008