Tuesday, August 15, 2017

Air India gets Rs. 927 crore breather, banks shy away

The center has pumped in another Rs. 927 crore in Air India this month, keeping its promise of fund infusion made almost a decade ago.

It'll continue to do so until Air India goes through disinvestment process.

It is a life saver for Maharaja, as it had to delay salaries of some of its employees due to a severe cash crunch.

Here's more.

State-owned banks have shied away from extending loans to the embattled state-run airlines, as it's on its way to be privatized.

Air India has urged its parent ministry i.e. the Ministry of Civil Aviation to speak to the finance ministry for assistance in the matter of loans.

An Air India official told Mint that this infusion will help with Air India's liquidity.

The Maharaja has received Rs. 25,000 crore as equity from the government since 2012. It's to be noted that out of the Rs. 2,587 crore that AI was promised during this financial year, it has already received Rs. 1,633 crore.

Currently, AI has a monthly shortfall of Rs. 400 crore and banks are unwilling to lend a helping hand due to its privatization plans.
15/08/17 Anish Chakraborthy/News Bytes
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