‘Govt committed to equity infusion in Air India’

Civil Aviation Minister Praful Patel will present a proposal on the issue of infusing equity into cash strapped Air India soon to the Union Cabinet.
“The Government is committed to equity infusion (in Air India) for which we are moving the Cabinet very shortly. The Government is also committed to reduce the high cost debt (of Air India) to low cost debt with the assistance from banks,” Patel said here on the sidelines of a conference on aviation sector.
“The revival plan of the national carrier is on track,” he said adding steps have been taken in this direction which includes cost cutting, increasing revenue and rationalising routes.
Air India faces a debt of Rs 16,000 crore on an equity base of Rs 145 crore. It has been demanding a bailout package from the Government, consisting of equity infusion and a soft loan. It has accumulated losses of over Rs 7,200 crore up till March 31, 2009.
GoM to examine ATF issue: Patel also said the Group of Ministers constituted to look into the issue of reduction of sales tax on aviation turbine fuel (ATF), will meet soon to decide on the matter.
17/09/09 KS Narayanan/ExpressBuzz

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Categories: NACIL Sep 2009