Minister wants Rs 2K cr more for AI

New Delhi: With service providers threatening to take dire steps like stopping supplies to Air India over mounting dues, the aviation ministry has sought an additional equity infusion of Rs 2,000 crore in the next fiscal, over and above the Rs 800 crore given last financial year and Rs 1,200 crore that's expected within a month.
Aviation minister Praful Patel met Planning Commission deputy chairman Montek Singh Ahluwalia earlier this week for the additional funds as a provision would have to be made in the coming Budget for this. The committee of secretaries had originally proposed an infusion of Rs 5,000 crore into AI. "Rs 2,000 crore has already been agreed on and we have sought a similar amount next fiscal," he said.
Before Ahluwalia, Patel had also met finance minister Pranab Mukherjee to press for a sovereign guarantee for backing the airlines loans.
17/12/10 Saurabh Sinha/Times of India

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Categories: Air India Dec 2010