Air India to get Rs.4,000 crore budget support for 2012-13

March 16th, 2012 - 5:49 pm ICT by IANS  

Pranab Mukherjee New Delhi, March 16 (IANS) Finance Minister Pranab Mukherjee 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 loans 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.

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