According to officials, the government has made it clear that the state-owned airline has to improve its performance if it is looking out for more grants from the former
GN Bureau | December 21, 2016
National carrier Air India will get only Rs 80 crore as additional budget support in the current financial year from the government – much below its demand of Rs 2,200 crore, reported The Business Standard.
The government has agreed to release a ‘meagre’ grant despite the fact Air India’s chairman and managing director Ashwani Lohani had written to the former that funds crunch might derail the turnaround process of the state-run airline.
“Civil aviation ministry’s concerns over requisite funds were accepted by the finance ministry but the latter expressed its inability to accept the full demand,” the newspaper quoted a civil aviation ministry official.
According to AI officials, though, the Rs 80 crore being offered is too negligible an amount to be invested in an airline. The government has made it clear that the state-owned airline has to improve its performance if it is looking out for more grants from the former.
“The money comes from the Consolidated Fund of India. Every company has to show some performance to get more funding,” said an official.
The newspaper further reported that Lohani had written to the civil aviation ministry in November saying that because of the airline’s huge debt burden, a reduced equity infusion would put the airline’s expansion plan in jeopardy.
He underlined that the airline would be forced to raise temporary loans from the banks to bridge the liquidity gap, thus endangering the liquidity and survival of the company.
Air India has debt of Rs 46,000 crore and has annual interest outgo of around Rs 4,000 crore, the report said.
In a big leap aimed at diversifying its crude oil sources and boosting the country’s energy security, IndianOil Corporation has begun crude oil imports from the US. The first cargo of high-sulphur ‘Mars’ crude oil was loaded recently from St. James Port on ‘Bergitta`
When prime minister Narendra Modi spoke about action against benami properties while delivering the I-Day address from the Red Fort ramparts, he was in fact fulfilling a promise he made during the last Mann ki Baat of 2016. “The law against benami property was lying i
Rural Electrification Corporation (REC) Limited’s, total income, as on June 30, has risen to Rs 34,614 crore as against Rs 29,952 crore in the previous corresponding quarter. The profit before tax (PBT) for the quarter is Rs 1,890 crore. The enterprise is focused on financing power pr
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC), an Indian Railways’ PSU, has come up with an International tour package based on leisure and pilgrimage theme. IRCTC is one of the biggest e-commerce website across Asia. There is Ramayana Yat
Steel Authority of India Ltd (SAIL) clocked a turnover of Rs 12,860 crore in the first quarter of 2017-18 FY, registering a growth of 26 percent over the turnover of Rs 10,180 crore achieved in corresponding period last year (CPLY). In the same quarter, the total sales volume at 3.028 milli
ONGC has granted Rs 100 crore to turn the vision of affordable world class cancer care facilities in central India into reality. The National Cancer Institute’s (NCI) first phase at Nagpur was unveiled on August 13, 2017 in the presence of Maharashtra chief minister Devendra Fadnavis.