Mumbai: The Finance Ministry has decided to hold back the equity support of Rs 3,574 crore it had said it would provide to Air India, civil aviation ministry and Air India sources said.
The decision will undoubtedly have an adverse impact on Air India, which has been attempting a turnaround and making an effort to achieve various milestones it had been set as pre-conditions for this equity support.
"The ministry of finance said it cannot give the equity right now because of the fiscal deficit," says an Air India executive not wanting to be identified.
The finance minister has set a target of containing the fiscal deficit at 4.8 per cent of the gross domestic product in the current fiscal year. With six months of the year yet to go, the deficit already stands at 62.8 per cent of the target.
25/09/13 Manisha Singhal/Business Today
To Read the News in full at Source, Click the Headline
The decision will undoubtedly have an adverse impact on Air India, which has been attempting a turnaround and making an effort to achieve various milestones it had been set as pre-conditions for this equity support.
"The ministry of finance said it cannot give the equity right now because of the fiscal deficit," says an Air India executive not wanting to be identified.
The finance minister has set a target of containing the fiscal deficit at 4.8 per cent of the gross domestic product in the current fiscal year. With six months of the year yet to go, the deficit already stands at 62.8 per cent of the target.
25/09/13 Manisha Singhal/Business Today
