Ravi to push Pranab on bigger infusion for AI

New Delhi: The civil aviation ministry has asked for a big one-time infusion for Air India in the coming budget.
“We have already asked for more,” minister Vayalar Ravi told reporters to a query about the budget allocation sought by him. He refused to divulge details.
According the plan by the government, which was to infuse Rs 5,000 crore, the ailing carrier has till now received a total of Rs 2,000 crore as equity from the government. The other Rs 2,000 crore was slated to come in the next financial year and Rs 1,000 crore by 2013-14.
Sources in the ministry said provision for at least Rs 1,200 crore worth of equity could be made in the 2011-12 budget and the remaining part could come in the supplementary budget.
Ravi would meet Finance Minister Pranab Mukherjee tomorrow to discuss issues pertaining to the aviation sector in the upcoming budget.
The minister would also hold a meeting with leaders of all trade unions in AI tomorrow to seek their cooperation to turn around the carrier. The airline has 31,000 employees on its rolls and another 10,000 on contract. After meeting the unions, Ravi would also hold discussions with the management on the feedback he gets from the unions.
15/02/11 Business Standard

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Categories: Air India Feb 2011