Govt considering infusing further equity in AI

New Delhi: Government may consider infusing further equity of Rs 2,000 crore in cash-starved Air India, after it is expected to grant the state-owned airline Rs 1,200 crore by next month.
"We can look at pumping another Rs 2,000 crore later," Civil Aviation Minister Praful Patel said today when asked whether the government could infuse more funds to enhance the the debt-equity ratio of the ailing national carrier.
"We have moved a Cabinet note for infusion of Rs 1,200 crore equity (in Air India). It has already been circulated (to members of the Cabinet). We hope that a decision is taken by November," Patel said on the sidelines of a seminar on air traffic management here.
"Air India's overall turnover would be higher. As there is a healthy growth of air traffic, the yields are better and costs are going down," he said.
Asked whether there would be a "bailout" for private airlines also, Patel replied in the negative but said the government and the Reserve Bank have already taken several measures to come to the aid of the aviation industry.
20/10/10 PTI/Economic Times

To Read the News in full at Source, Click the Headline

Categories: NACIL Oct 2010