Bailout Package for Air India

The Financial Restructuring Plan (FRP) and Turn Around Plan (TAP) of Air India was considered by the Government on 12.04.2012 and approved as under:-
i) Induction of upfront equity of Rs. 6,750 crore, including Rs.1,200 crore provided in the Budget of 2011-12 and already released, in the Financial Year 2011-12.
ii) Equity for Cash deficit support of Rs.4,552 crore from Financial Year 2012-13 to Financial Year 2017-18.
iii) Equity for already guarantee aircraft loan of Rs. 18,929 crore till Financial Year 2021.
iv) Government of India Guarantee for repayment of Principal amount and payment of Interest on the Non-Convertible Debentures (NCDs) of Rs.7400 crore proposed to be issued by Air India Limited to the financial institutions, Banks, LIC, EPFO etc.
During the current financial year, the Government has released a sum of Rs. 2916 crore towards equity infusion in Air India, which were utilized by Air India for payment to Oil Companies, for payment of salary, payment of service tax and to the vendors etc.
Giving this information in a written reply to a question in Rajya Sabha today, Minister of Civil Aviation Shri Ajit Singh assured that the money will be spent judiciously.
14/08/12 Press Information Bureau

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

Categories: Air India Aug 2012