Bank consortium provides Air India Rs 1,000 cr for working capital

New Delhi: A consortium of banks led by Canara Bank is believed to have provided Rs 1,000 crore as working capital to Air India, it is reliably learnt.
This is intended to provide emergency relief to the beleaguered airline. The airline is losing Rs 14 crore a day.
The airline is likely to report a loss of Rs 5,600 crore this year.
The airline is also said to be examining the possibility of turning to private equity funds, if the Union Cabinet allows it, sources told Business Line.
Sources indicated that political will was now required to make a change over in the fortunes of Air India. "Pumping in funds alone will not make a difference. A clear road map is required on the way forward and how to get there which should have the blessings of all major stake holders," sources said.
The actual survival kit for the airline will be firmed up only after a nod from the Union Cabinet. The Ministry of Civil Aviation will soon send a `status paper' to the Cabinet, which will only state the current position in the airline.
The Cabinet paper is likely to be prepared in the second week of March after the Hyderabad air show is over.
24/02/10 Richa Mishra/Ashwini Phadnis/Business Line

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Categories: NACIL Feb 2010