Air India: Govt mulls Rs 30,000 cr bailout package

New Delhi: Seeking to turnaround the cash-strapped Air India, the government is considering a nearly Rs 30,000 crore package for the national carrier over a period of 10 years, official sources said on Monday night.
According to the proposal, the government is considering writing off Rs 4,500 crore cash loss of Air India, infusing an additional equity of Rs 6,750 crore and Rs 17,000-18,000 crore for its fleet acquisition programme.
The bailout package is expected to roll-out over a period of 10 years, the sources said after a two-hour meeting of official from the Civil Aviation Ministry, Air India and representatives of lenders-a consortium of 14 banks led by the State Bank of India (SBI).
The lenders gave a "broad approval" to the debt restructuring plan of the cash-strapped carrier after getting the green signal from the Reserve Bank of India (RBI) last week, the sources said.
The Cabinet note, taking cognisance of the entire bailout package, will be prepared by the Civil Aviation Ministry in the "next few days".
This crucial meeting came a day ahead of the meeting of the Air India Board in New Delhi.
29/11/11 Press Trust of India/IBN Live

To Read the News in full at Source, Click the Headline

Categories: Air India Nov 2011