Air India seeks equity infusion of Rs. 6,600 crore

New Delhi: A proposal for equity infusion of Rs. 6,600 crore for Air India has been mooted by the Civil Aviation Ministry to enable the airline clear its massive dues.
A Group of Ministers (GoM), which is expected to meet later this month, may take a view on the plan which also includes restructuring of loans of Rs. 43,200 crore and vendor dues amounting to Rs. 4,600 crore, official sources said.
After an ad hoc payment of Rs. 500 crore to partly clear its dues to Air India on account of VVIP travel and evacuation flights, government would soon release another tranche of Rs. 705 crore to it.
Air India sought Rs. 6,600 crore as part of a "big dose" of equity infusion to clear its dues, saying most of the equity infusion it has received so far has gone to pay off staff salaries and part of interests on loans, besides daily bills of jet fuel.
The ailing national carrier has a working capital loan of Rs. 21,200 crore, long-term loan on fleet acquisition of Rs. 22,000 crore, vendor dues and accumulated losses worth Rs. 20,320 crore, as per the latest figures.
01/09/11 NDTV.com

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Categories: Air India Sep 2011