Permission sought for $1 bn tax-free bonds by Air India

New Delhi: The civil aviation ministry has sought the cabinet's nod for Air India to float tax-free bonds worth Rs.5,000 crore ($1 billion) and fresh equity from the government to fund its fleet expansion plans and other expenses.
The ministry said the bonds were necessary for the ailing state-run carrier, struggling to stay afloat after having accumulated losses worth $2 billion, to meet its expenses during the ongoing five year plan that ends 2011-12, officials said.
The airline currently has an equity base of Rs.145 crore (less than $30 million) and the fresh equity infusion has been sought to ensure that interest paid on some high-cost debt can be lowered, the officials added.
They also clarified that these issues will be considered by the cabinet separately.
14/09/09 PTI/Economic Times

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Categories: NACIL Aug 2009