New Delhi: The Ministry of Civil Aviation has released the first tranche of Rs 800 crore to Air India this financial year as part of the turnaround plan to infuse equity for the revival of the cash-strapped national carrier.
A senior official at the ministry said, “We reviewed the performance of the airline and are satisfied with the feedback we have received. Since the Finance Bill is yet to be passed, as per norms we have released 16% of the budgeted amount to Air India.” The airline was allocated Rs 5,000 crore as equity infusion in the Union Budget this fiscal.
Of the Rs 800 crore released, Rs 500 crore would be utilized by the airline to clear dues of oil companies. The remaining resources would be used for payment of interest on non-convertible debentures (NCDs) issued last year.
The remaining amount of Rs 4200 allocated in the Budget to Air India would be released on a quarterly basis.
26/04/13 Sharmistha Mukherjee/Business STandard
