With an urgent need to strengthen Air India and develop aviation infrastructure across the country, the Civil Aviation Ministry is understood to have sought an allocation of Rs 3,500 crore in the upcoming budget.
This would be in addition to Rs 5,000 crore due from the current year, comprising Rs 4,600 as equity infusion and Rs 400 crore as the interest to be paid on bonds worth Rs 7,400 crore issued this year to banks and financial institutions that have lent money to the national carrier, official sources said.
The government could not give Air India the entire money committed for this year and "we hope they should be able to give it next year", one of the sources said.
During the remaining part of this financial year, Air India expects the government to release Rs 2,000 crore within March 31 as part of the turnaround and restructuring plans, and announced by Finance Minister P Chidambaram in Parliament during the last Winter Session.
20/01/13 PTI/Indian Express
