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03-18-2012, 09:36 AM #1
Budget 2012-13: Air India to get Rs 4,000 crore support
Finance Minister Pranab Mukherjee on Friday proposed to pump in Rs 4,000 crore in equity into the ailing national carrier, Air India, in the next fiscal.
"Budgetary support of Rs 4,000 crore has been earmarked for equity infusion in Air India Limited," said the expenditure budget presented to the Lok Sabha for the financial year starting April 1, 2012.
In his last budget (2011-12), Mukherjee had allocated Rs 1,200 crore for the flag carrier.
The Airports Authority of India (AAI) has been allocated Rs.280 crore, out of which Rs 80.52 crore has been earmarked for airport development in the northeastern states.
The aviation regulator, the Directorate General of Civil Aviation (DGCA), has been allocated Rs 60 crore to pursue its plans.
Air India currently has a total debt of Rs 43,777 crore, including ***** and dues to vendors like oil firms and airport operators.
A group of ministers (GoM) led by Mukherjee had approved the debt restructuring plan that allows the carrier to raise Rs 7,400 crore via bonds, backed by a sovereign guarantee.