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04-12-2012, 10:16 PM #1
Air India to get R 30K cr, to induct 27 Boeing Dreamliners
Giving a major boost to cash- strapped Air India, the government on Thursday announced a turnaround package with a Rs 30,000 crore equity infusion over a nine-year period and induction of 27 Boeing 787 Dreamliners.
In another development, the government also approved a proposal to hive off Air India's MRO (Maintenance, Repair and Overhaul) business and its Engineering Services as two wholly-owned subsidiaries, placing about 19,000 of around 28,000 total employees with them.
Announcing the decisions of the Cabinet Committee on Economic Affairs (CCEA), Civil Aviation Minister Ajit Singh told reporters that under the approved Turnaround Plan (TAP) and Financial Restructuring Plan (FRP), the airline would get an upfront equity infusion of Rs 6,750 crore.
The airline has been allowed to issue government-guaranteed non-convertible debentures (NCDs) worth Rs 7,400 crore to its lenders, like financial institutions, banks, LIC and EPFO. These NCDs would be used to repay part of the airline's close to Rs 21,200 crore working capital *****....being a human...