Thursday, December 05, 2019

Air India has received Rs 30,520-cr equity infusion since FY12, says govt

New Delhi: Debt-laden Air India has received an equity infusion of Rs 30,520.21 crore from financial year 2011-12 till date, the government said on Thursday and reiterated that it is committed to the disinvestment of the national carrier.

In April 2012, the then central government had approved a Turnaround Plan (TAP)/ Financial Restructuring Plan (FRP) for reviving Air India, which has been in the red since merger of Indian Airlines in 2007-08.
To prepare for the disinvestment, the government is implementing a strategic plan, which includes a financial package and focus on increasing operational efficiencies, Minister of State for Civil Aviation Hardeep Singh Puri said on Thursday. The major components of the financial package for 2018-19 included a cash support of Rs 3,975 crore to Air India, inclusive of Rs 1,630 crore already infused in the airline in 2018-19.

Another component was for providing a "government guarantee of Rs 7,600 crore, inclusive of Rs 3,000 crore already provided to Air India in 2018-19, to raise new debt for payment of stretched liabilities".

"Air India has received an equity infusion of Rs 30,520.21 crore till date from FY 2011-12, which includes financial support as per TAP/FRP and cash support in FY 2018-19," he said in a written reply to the Lok Sabha.
Air India's net loss in 2018-19 is provisionally estimated to be Rs 8,556.35 crore, the minister said, adding that the government is committed to the disinvestment of Air India.
05/12/19 PTI/Business Standard

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