Ministries told to help out Air India

New Delhi: The government on Saturday asked the Finance Ministry to consider a financial bailout for Air India and urged the Petroleum Ministry to extend the fuel credit limit for at least three more months.
This was decided at the first meeting of a high-level committee headed by Cabinet Secretary K.M. Chandrasekhar.
It vetted the airline’s plans to cut cost and generate revenue as also the plan to renew its fleet to meet the intense competition.
Air India is estimated to have lost Rs.7,200 crore during 2008-09. It has a working capital borrowing of Rs.17,000 crore, primarily to pay off its debt on account of fleet acquisition. The airline is understood to have made out a case before the Committee of Secretaries (CoS) for a fresh equity infusion by the government and a soft loan of Rs. 3,000 crore. It has placed orders for 111 new planes worth more than Rs.50,000 crore, against Rs.145 crore worth of paid-up capital.
26/07/09 PTI/The Hindu

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Categories: NACIL Jul 2009