Air India gets less govt money than promised

Hyderabad: Cash-strapped Air India has received only Rs325 crore in the first tranche of equity infusion from the government, Rs75 crore short of the approved sum.
In a letter to the national airline on 27 February, the ministry of civil aviation stated that it was giving Rs75 crore of the promised amount to the Airports Authority of India (AAI), said two senior officials in the ministry of civil aviation, asking not to be identified.
Air India, run by state-owned National Aviation Co. of India Ltd (Nacil), may see a similar cut in the next tranche of equity infusion of Rs400 crore that’s due later in March, one of the officials said.
On 18 February, the Cabinet Committee on Economic Affairs had approved the release of Rs800 crore as equity infusion into Nacil in two equal portions to ease the airline’s cash flow crunch and help it borrow at lower rates.
04/03/10 Live Mint

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Categories: NACIL Mar 2010