EXTRA EQUITY FOR AI BETWEEN 2012 AND 2021
Financially- troubled Air India will get a major boost with the government deciding on Thursday to give it a turnaround package, with a ` 30,000- crore equity infusion over nine years.
Till now the total outstanding debt of the company is worth ` 67,520 crore, of which ` 21,200 crore is working capital loan, ` 22,000 crore long- term loan on fleet acquisition, ` 4,600 crore vendor dues, besides an accumulated loss of ` 20,320 crore.
Civil aviation minister Ajit Singh informed that as per the approved FRP proposal additional equity of ` 30,231 crore would be infused between 2012 and 2021 in the airline. “But Air India will have to fulfil the tasks set out in the TAP and meet all the milestones on a regular basis to get these benefits,” he added.
Asked if Air India would also be allowed to find a suitable foreign airline partner, the minister said the decision to allow foreign airlines to pick up 49 per cent stake was for all Indian carriers. “Air India will have to find the right suitor... But the government will still own it,” he added.
Explaining further on the issue of proposed FDI issue, the minister said, “Investment by foreign carriers would not be through the automatic route and it would have to go through all checks and balances. Indian nationals will have substantial ownership and sufficient control.” The minister also informed that the SBI- led consortium have also approved conversion of short- term working capital loans of ` 11,000 crore into long- term loans.