Govt nod for Rs 1,200-cr infusion in AI by end-Oct: Patel

Mumbai, Oct 12 (PTI)India's national air-carrier Air
India is likely to receive Government approval for a Rs
1,200-crore equity infusion by month-end, Indian Civil
Aviation Minister Praful Patel said Tuesday.
"The note for the Cabinet Committee on Economic Affairs
(CCEA) has been moved...I think by the end of October, we will
be getting the clearance for the second tranche of Rs 1,200
crore (equity infusion)," Patel told reporters here.
The Minister, however, said there was no cap on
Government's funding to the national airline, adding the
Committee of Secretaries (CoS) has already discussed the
issue.
After pumping in Rs 800 crore in the national airline
last year, the Government had earlier this year announced an
additional Rs 1,200 crore equity infusion in Air India to help
strengthen its balance-sheet.
"After the Rs 2,000 crore infusion, if required and as
per SBI Cap advice, we can infuse further equity," Patel said.
Air India has mandated SBI Caps to provide it a road-map
on its proposed financial restructuring, which includes debt
reduction, enhancement in revenue and lowering of costs.
Patel said the airline has seen significant improvements
in its revenue as well as yield on the back of an encouraging
growth in traffic this year. (MORE) PTI IAS
MHM


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