Additional equity infusion on the anvil for AI

A proposal to infuse fresh equity to strengthen Air India and to grant the cash-strapped national carrier a soft loan to finance its fleet acquisition plans is likely to be completed by the next month.
"We will be moving the government for equity and a soft loan. We will go for consultations and try to complete the process by January," Civil Aviation Minister Praful Patel said in New Delhi.
Patel, who had a meeting with the Prime Minister Manmohan Singh to discuss aviation related issues, refused to give out the amount of either the soft loan or that of the additional equity, saying the figures yet to be finalised.
Air India, which has a paid-up capital of Rs 145 crore and authorised capital of Rs 1,500 crore, has placed a Rs 40,000 order to acquire a total of 111 aircraft. The airline is estimated to suffer a loss of around Rs 2,300 crore this financial year.
Earlier, reports said the government was likely to put in additional equity of Rs 1,200 crore and grant it a soft loan of Rs 1,000 crore to enable it sail through the financial crisis the industry is facing.
Patel had recently said the flagship carrier was owned by the government and like an owner of a company, government should be ready to infuse liquidity into it.
17/12/08 Howrah News Service

To Read the News in full at Source, Click the Headline

Categories: NACIL Dec 2008