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Government infuses Rs. 6,000 crores loan into Air India
The Government has given Air India a loan of up to Rs. 6, 000 crore to meet its expenses prior to
being sold off. Air India was supposed to get Rs. 2, 500 crore in this fiscal according to the equity
infusion plan but is facing a shortfall of Rs. 700 crore.
Aviation secretary RN Choubey stated that - “We have obtained government guarantee to enable
AI to borrow up to Rs 6, 000 crore for meeting cash deficit in the run-up to disinvestment. Our
expectation is that the AI management will improve fleet utilisation and ontime performance to
improve its valuation prior to the disinvestment.”
The airline has got about Rs 26, 000 crore as equity infusion out of the total Rs 31, 200-odd crore
promised by the UPA as part of its financial restructuring and turnaround plan. As per reports,
the airlines is sufficient for a few months with the present equity infusion by the government.
The government has started the process of appointing transaction advisers and valuators for AI.
The Department of Investment and Public Asset Management (DIPAM) will manage this
process.
Simultaneously, the government is also working on a plan B for the airlines in case the airline
and its subsidiaries are not able to get the right price from parties that have formally shown
interest in its divestment.
Posted on: 2017-10-15 09:32:27





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