New Delhi: The government on Tuesday said that State Bank of India (SBI) has not extended any lifeline to the cash-strapped Kingfisher Airlines this fiscal.
"SBI, leader of consortium of lender banks, has informed that no such lifeline has been extended to KFA by them during the current financial year," Minister of State for Finance Namo Narain Meena said in a written reply in the Rajya Sabha.
He said this in response to a question whether the SBI and other PSU lenders have extended a Rs1,200 crore lifeline to the Kingfisher Airlines Ltd (KFA) by converting part of loans into equity.
The crisis-ridden airline has a debt of Rs7,057.08 crore. The financial crunch has hit its operations with dozens of flights being cancelled. Tax authorities have added to its woes by freezing its bank accounts for non-payment of dues.
The Directorate General of Civil Aviation (DGCA), according to reports, is mulling even cancellation of Kingfisher's flying permit after the airline submitted to it the summer flight schedule with 15 to 16 aircraft as against 28 planes submitted last month.
20/03/12 PTI/Daily News & Analysis
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