New Delhi : The proposal for the current financial year will be discussed by GoM tomorrow.
A group of officers, set up by the government to vet Air India’s restructuring plan, has recommended a Rs 6,000-crore bailout for the current fiscal. Most of this money will come through equity infusion; the rest would be in terms of guarantee for loans.
The recommendations of this group, comprising officials from the ministries of finance and civil aviation, will now go to the Group of Ministers on Air India which will meet on Thursday.
A senior civil aviation ministry official said on Tuesday that the group of officers has recommended a Rs 6,000-crore infusion in Air India for the ongoing 2011-12. “The maximum part of the money will be equity infusion. Of the recommended infusion, the airline has already got Rs 1,200 crore from the government,” he told Business Standard.
All these infusions have strict riders attached with them, the official said. That includes cutting cost through rationalisation of wages, increasing revenue and utilisation of assets. “The group has sought an infusion over Rs 24,000 crore to be done till 2021,” he added.
All the recommendations will be discussed by the Group of Ministers, headed by Finance Minister Pranab Mukherjee, which is meeting on Thursday.
25/10/11 Mihir Mishra/Business Standard
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