Praful Patel meets PM

New Delhi: Civil Aviation Minister Praful Patel today met Prime Minister Manmohan Singh amid indications that the Union Cabinet is likely to decide on the much-awaited equity infusion worth Rs 1,200 crore in Air India soon.
While Patel refused to divulge anything about the meeting describing it as a courtesy call, it is understood that equity infusion in Air India was among the issues that came up for discussion at his meeting with the Prime Minister.
Sources said a decision on the matter is likely to be taken by the Cabinet Committee on Economic Affairs soon as a Cabinet note was circulated by the Civil Aviation Ministry a few weeks back.
In addition to the Rs 1,200 crore equity, the ministry is understood to have mooted a proposal for further infusion of equity over the next few years at least to the tune of Rs 5,000 crore, seeking another tranche of Rs 2,000 crore in the next fiscal.
Patel had recently told PTI that the national carrier would require additional equity to meet its mounting debt burden in addition to the proposed Rs 1,200 crore equity. The government intends to raise its working capital to about Rs 7,000-8,000 crore, he had said.
23/12/10 Press Trust of India/Business Standard

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

Categories: Air India Dec 2010