Thursday, November 16, 2017

Air India may get new name; Govt unlikely to infuse Rs 21,000 crore after privatisation

The discussion around the privatization of state-run carrier Air India has been going on for a while now, with the government even saying that it hopes that the process is completed "fast." But it is now being said that the government may not infuse the remaining Rs 21,000 crore promised equity into Air India Limited, once the company is owned by a private player.

The previous United Progressive Alliance (UPA) government had promised to infuse Rs 50,000 crore in equity into the debt-ridden carrier until 2032, in a bid to save it from making more losses. Out if the promised amount, Air India has already received about Rs 27,000 crore.

While it received Rs 1,800 crore this fiscal year, another Rs 1,800 crore has been set aside for the next fiscal, when the firm is likely to complete the privatization procedure. However, after that the completion, it may not receive the promised amount of Rs 21,000 crore.

"I don't think government of India will inject equity in a privatised airline," Livemint quoted civil aviation secretary R.N. Chaubey as saying.
16/11/17 Vanilla Sharma/IBTimes