Air India to demand another Rs 2,000 crore to repay debts

New Delhi: As the process to infuse Rs 1,200 crore as additional equity in Air India takes shape, the national carrier might ask for another Rs 2,000 crore from the government in the next financial year to repay its massive debt, official sources said on Sunday.
The airline would require Rs 3,000-Rs 4,000 crore annually to pay off its debt, which is primarily on account of aircraft induction, according to an official estimation.
The monthly interest burden on this count averages at Rs 200 crore, while the debt each month stands at about Rs 300 crore, the sources said.
In this backdrop, the airline may ask for another tranche of Rs 2,000 crore as equity some time in the next financial year, the sources said.
While the government infused Rs 800 crore in the last fiscal, a note for consideration to the Cabinet Committee on Economic Affairs (CCEA) is being prepared by Civil Aviation Ministry for an additional infusion of Rs 1,200 crore.
The second tranche of government funds, to be released after CCEA approval, is also likely to be used for settling outstanding dues and not to enhance the airline's equity base.
10/10/10 PTI/Economic Times

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Categories: NACIL Oct 2010