GoM to consider Rs 1200 cr infusion into Air India

New Delhi: A decision to infuse Rs 1,200 crore as equity in the ailing Air India is likely to be considered by a Group of Ministers soon.
"There is no rethink on the announcement made by the government that Rs 1,200 crore will be infused. The Group of Ministers will meet soon," an official source said today.
Members of the GoM, headed by Finance Minister Pranab Mukherjee , were cognizant of the fact that the issue needed to be addressed in an expeditious manner, given the critical financial health of the airline, the source said.
According to the sources, in a proposal several months ago, the national carrier had sought the infusion of Rs 10,000 crore.
The proposal was examined by the Committee of Secretaries , led by Cabinet Secretary K M Chandrasekhar, and it was decided to provide Rs 2,000 crore to the airline.
The government had also asked the airline to take stringent cost-cutting and revenue-enhancing measures to strengthen its financial bottomline.
Out of Rs 2,000 crore planned to be given to the airline, Rs 800 crore was granted in February.
28/11/10 PTI/Economic Times

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Categories: Air India Nov 2010