Air India Likely To Get Rs 1200 Cr As Additional Equity

Ailing Air India is likely to get an additional equity infusion of Rs 1,200 crore with a Group of Ministers (GoM) on Wednesday night deciding to bring a proposal on the issue soon.

“The GoM will bring a proposal to release Rs 1,200 crore of equity and place it before the Cabinet Committee on Economic Affairs within a short time-frame”, Civil Aviation Minister Vayalar Ravi said after a 90-minute meeting of the ministerial group headed by Finance Minister Pranab Mukherjee.

At the first meeting of the GoM, it was also decided to set up a committee to examine the turnaround and financial restructuring plans of Air India and submit its report within six weeks to the GoM for a review, he said.

This committee would also examine the plan to restructure its massive debt of Rs 40,000 crore, sources said.

A Committee of Secretaries, headed by Cabinet Secretary A K Seth, would be established to look into the financial claims submit

From: http://ping.fm/gTl28