New Delhi: Monday's vote-on-account is unlikely to have any real relief for cash-strapped Air India as the government's promised equity support fell short by nearly Rs 3,600 crore in the 2013-14 fiscal. Faced with such a shortfall, which is unlikely to be addressed in the interim Budget, AI is now looking to get a sovereign guarantee for a loan of Rs 1,000 crore.
"The equity support from the government was supposed to be used to pay off our huge debt burden. But with the infusion falling short, we are forced to raise more loans from the market at hefty rates. The government has so far given sovereign guarantee for raising Rs 2,000 crore as loan and we may get a support letter for another Rs 1,000 crore," said an official.
The government has so far infused Rs 12,200 crore into AI.
Top aviation authorities say that the next government will have to take a call on how AI survives. The airline's aircraft and working capital debt was Rs 26,033 crore and Rs 21,125 crore, respectively, on December 31, 2013. AI is expected to lose Rs 3,990 crore this fiscal.
17/02/14 Saurabh Sinha/Times of India
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"The equity support from the government was supposed to be used to pay off our huge debt burden. But with the infusion falling short, we are forced to raise more loans from the market at hefty rates. The government has so far given sovereign guarantee for raising Rs 2,000 crore as loan and we may get a support letter for another Rs 1,000 crore," said an official.
The government has so far infused Rs 12,200 crore into AI.
Top aviation authorities say that the next government will have to take a call on how AI survives. The airline's aircraft and working capital debt was Rs 26,033 crore and Rs 21,125 crore, respectively, on December 31, 2013. AI is expected to lose Rs 3,990 crore this fiscal.
17/02/14 Saurabh Sinha/Times of India
