Air India may seek Rs 4K cr rescue package from govt

Air India is likely to seek a revised rescue package of Rs 4,000 crore from the government at the upcoming meeting of its board later this month.
The package will be in the form of both additional equity and long-term loans, a source closely connected to the development said.
"The Cabinet note for providing an additional equity of Rs 1,250 crore is ready and approval for the same is expected shortly," the source said.
In addition, Rs 2,750 crore worth long-term loans from banks and other financial institutions is also on the cards, the source said, adding that, "the package has to be announced before the proclamation of the general elections and subsequent imposition of the model code of conduct."
In the earlier package, the state-owned carrier had suggested an equity infusion of Rs 1,000 crore and a soft loan of Rs 1,500 crore to fund its fleet acquisition programme. The national air-carrier's Board is meeting in Delhi next week to adopt its annual accounts.
09/02/09 Press Trust of India/NDTV.com

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Categories: NACIL Feb 2009