AI may get a shot in the arm soon

Prime minister assures that EGoM on AI's turnaround will take "expeditious decisions"

sweta-ranjan

Sweta Ranjan | June 30, 2011



Air India (AI) may soon get another equity infusion of Rs 1,200 crore from the government. Prime minister Manmohan Singh told a group of editors on Wednesday that he would take all possible measures to revamp the ailing carrier.

Singh said that he would ask finance minister Pranab Mukherjee, who heads the group of ministers (GOM) working on AI's turnaround, to take "expeditious decisions" to save AI.

The prime minister said, "We will resolve the issues surrounding Air India. I will request Pranab Mukherjee to take expeditious decisions in the matter".

The GoM, last week, had said that the cash-strapped airline needed another equity infusion of Rs 1,200 crore. The government has already made equity infusions of Rs 2,000 crore in 2009-2010. But the airline may need as much as Rs 5,000 crore for a complete turnaround.

Kamaljeet Ratan, a spokesman of Air India, said that the revival of airline will happen soon and the company will earn back its lost reputation. He said that AI is working to prepare a resource generation plan and implement the turnaround programme.

Finance minister Mukherjee, at a meeting on June 22, had also said that a committee would be set up to examine the turnaround and financial restructuring plans. He had also assured that the committee would chalk out a plan to streamline and restructure the huge debt of Rs 40,000 crore.

Air India is saddled with a debt of about Rs 40,000 crore, of which Rs 18,000 crore are working capital loans taken from a consortium of banks and the remaining amount of loans is towards payment of new aircraft ordered.
 

Comments

 

Other News

What exactly is the true purpose of business?

Invaluable By Somik Raha IndiePress, 316 pages, Rs 701 From coding at age 12 to a deep dive into philoso

Yoga Day has changed perceptions about it in ten years: PM

The expanding awareness of Yoga over the past ten years has changed perceptions associated with it, prime minister Narendra Modi said in Srinagar on Friday on the occasion of the International Day of Yoga.   “Yoga is now emerging beyond limited boundaries. The world is witnessing t

Listening to tomorrow: The imperative for youth-driven data in India

Over a decade and a half ago when I was still a student, millennials felt the burning need to break down the barriers of gatekeeping in traditional media. Young voices, brimming with ideas and opinions, were often sidelined, their perspectives deemed too marginal or unrefined for mainstream discourse. This

Israel-Palestine War: Lessons from Past Peace Efforts

Israel-Palestine War: Give Peace a Chance By Dr. Joseph K. Thomas IndiePress, 243 pages, Rs 399 T

How inner work helps subvert painful narratives

Unashamed By Neha Bhat HarperCollins, 240 pages, Rs 499   * How do I connect better with my partner? *&nbs

Heatwave spikes power demand: measures taken to ensure supply

The Northern Region has been experiencing high power demand conditions due to a prevailing heat wave since May 17. Despite these challenging conditions, the highest ever peak demand of 89 GW in the Northern Region was successfully met on June 17. This achievement was made possible by import

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter