New Delhi: The Government today said it is closely watching the turnaround plan of national carrier Air India, which is saddled with a heavy debt of up to Rs 40,000 crore.
" Air India is passing through a difficult phase as a result of global recession and high cost of operation. Equity support of Rs 2,000 crore has been injected in 2010 & 2011. Turn-around plan of Air India is being closely monitored," the UPA Government said in its 'Report to the People'.
The airline is faced with a debt of about Rs 40,000 crore, of which Rs 18,000 crore is working capital loans taken from a consortium of banks, while the balance Rs 22,000 crore worth of loans is towards payment of new aircraft ordered.
In the latest Budget, the government has announced it would infuse Rs 1,200 crore in the next financial year. Till now, the government has injected Rs 1,200 crore and Rs 800 crore in two tranches in 2009-10, raising the national carrier's equity base to Rs 2,145 crore.
Further, the Congress-led UPA said, two mega projects are being undertaken at Chennai and Kolkata airports, whose work involves complete modernisation and development of these airports.
22/05/11 PTI/Economic Times
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