Air India tries to raise Rs 2000 cr via equity, debt

Air India tries to raise Rs 2000 cr via equity, debt

New Delhi, Aug 8: The aviation ministry is trying to raise Rs 2,000 crore for cash-strapped Air India through a mix of equity and credit, in addition to the Rs 1,000 crore guarantee given to the airline to revive a lapsed loan.
“The Rs 2,000 crore is likely to come as borrowings. The options can be taking from small saving funds or it can be a mix of equity and borrowings. We are working out those details. A requirement of Rs 2,000 crore for AI has been submitted to the finance ministry,” said a senior aviation ministry official.
Aviation secretary R N Choubey said the government will ensure that “AI will always be fully provided for. There will not be a case of default or salary not being paid.” AI employees are yet to get the salary of last month.
While AI has sought Rs 2,121 crore equity infusion from the government after the failed divestment bid, the government had recently sought parliament approval for giving Rs 980 crore in the current fiscal. AI has so far received Rs 27,195.2 crore as equity infusion under the turn around plan (TAP) and financial restructuring plan (FRP) approved by UPA-II in 2012.