‘Govt to infuse additional equity in AI before March’

Mumbai: National air carrier, Air India, is likely to receive additional equity infusion of around Rs 2000 crore before March end. Union Civil Aviation Minister, Praful Patel, told PTI that the Ministry expects the infusion to be in place within next two months and was giving final touches to the equity package.
“The equity infusion (in Air India) issue is being examined in consultation with the Finance Ministry. We expect to get the approval before the end of this fiscal,'' Patel told PTI over phone from Nagpur here on Thursday.
While Air India officials would not reveal the equity amount that the airline needs, it is estimated that a little over Rs 2,000 crore would be required by the national air carrier.
Air India currently has a paid up capital of Rs 145 crore, with an authorised capital of Rs 1500 crore. With the company posting losses to the tune of Rs 2154 crore in the previous fiscal and staring at the possibility of the higher losses this year , the equity package is expected to go a long way in reliving the airline's woes.
05/02/09 Business Line

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Categories: NACIL Feb 2009