Govt infused Rs 500 cr into Air India

New Delhi : The government has provided cash-strapped Air India with an advance equity infusion of Rs 500 crore during the current year, Parliament was informed today.
"Air India has been provided ad hoc release of equity of Rs 500 crore in two instalments of Rs 250 crore each during the current year," Minister of State for Finance Namo Narain Meena said in a written reply in the Rajya Sabha.
Last month, the Finance Ministry released around Rs 265 crore to help Air India partially clear interest burden to banks.
The cash-strapped national carrier has interest burden of Rs 660 crore for the months of April to June.
Air India has borrowed loans from a consortium of 22 banks led by SBI.
Bank of Baroda, Punjab National Bank and Bank of India are the three biggest lender of the airline. Central Bank and HDFC are the other key lenders.
02/08/11 Press Trust of India/Business Standard

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Categories: Air India Aug 2011