GoM approves Rs 1,200 cr equity for AI

Govt will also clear Rs 532 cr outstanding payment to airline

PTI | July 18, 2011



More funds for cash-strapped Air India is on the anvil with the group of ministers (GoM) today approving in principle additional equity infusion of Rs 1,200 crore and payment of Rs 532 crore for operating VVIP and rescue flights.

Against the backdrop of the state-owned airline's massive cumulative loss and debt burden of about Rs 67,000 crore, the GoM headed by finance minister Pranab Mukherjee had a meeting and discussed finance issues confronting the ailing carrier.

After the meeting, Air India CMD Arvind Jadhav told reporters that the GoM has in-priciple granted approval for the Rs 1,200 crore equity infusion.

The GoM has also granted approval for payment of Rs 532 crore for operating VVIP and rescue flights for the government and formation of strategic business units for groundhandling, he said.

Civil aviation minister Vayalar Ravi told reporters the GoM will meet again next week to discuss other finance issues.

Jadhav said the GoM also asked the finance committee to prepare a note on Air India's turnaround plan.

Prime minister Manmohan Singh recently said he would ask Mukherjee as the head of GoM to take "expeditious decisions" to revamp the airline.

The national carrier has to repay a whopping Rs 20,415 crore worth of loans before the end of this fiscal year, official sources said.

As per the latest estimates, the ailing carrier was facing a net cumulative loss of Rs 20,320 crore between April 2007 and March 2011.

Its debt burden stood at Rs 46,950 crore -- Rs 20,185 crore worth of aircraft loans, Rs 22,165 crore working capital loans and over-dues of Rs 4,600 crore. Its cumulative loss and debt burden comes to a whopping Rs 67,270 crore.

To overcome this financial rot, Air India is seeking an upfront equity infusion of Rs 6,600 crore from the government for immediate relief and another Rs 5,736 crore to fund cash deficits spread over ten years till FY 2021.

Comments

 

Other News

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

The transformation trap: Why efficiency is not innovation

Every company is transforming, or so it claims.   There was a time when the word ‘transformation’ carried weight. It signified bold strategic shifts, reinvention of business models, and breakthrough technologies that fundamentally changed how organizations created

The Sardar biography that throws light on our times

Patel: A Life By Rajmohan Gandhi Aleph Books, 568 pages, Rs 1,199   There are many biographi

Climate change, El Niño rewrite Indian monsoon

The month of July exceeded its rainfall target despite forecasts of a below-normal month under a strengthening El Niño. The reason could be that climate change is amplifying monsoon complexity: West Pacific warming, Western Disturbances and evolving ocean conditions increasingly interact with El Ni&

Mumbai has just 1.28 sq.m. of open space per person: Study

Mumbai`s public space crisis is as much about mismanagement as it is about scarcity, and offers a governance roadmap that can be implemented without new legislation, according to a new report by the Urban Design Research Institute (UDRI) and the NGO Alliance for Governance and Renewal (NAGAR).  

Lok Sabha passes amendment bill to improve public examination system

The Lok Sabha on Wednesday passed the Public Examinations (Prevention of Unfair Means) Amendment Bill, 2026 by a voice vote after an extensive discussion. Replying to the debate, minister of state (independent charge) for science & technology; earth sciences and MoS in the PMO, Dr. Jite

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter