Air India to be infused by Rs. 30,000 crores by government of...

Air India to be infused by Rs. 30,000 crores by government of India

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Civil aviation minister Ajit Singh on April 12, 2012 said that the state run carrier Air India will be infused by Rs. 30,000 crores by the government of India by the year 2020. Singh also said that the carrier will spin off two units, the transport and the maintenance repair overhaul.

The government of India has approved a turnaround plan so as to restructure the operations and the finances of the carrier which is these days cash strapped. The infusion is indeed a boost for the ailing carrier.

Ajit Singh after the meeting of the Cabinet Committee on Economic Affairs (CCEA) said , “The turnaround plan of Air India has been approved,”. The TAP as well as the airline’s Financial restructuring plan (FRP) has been approved by the CCEA. \The FRP also includes the additional equity infusion by the government.

Some of the official sources said that apart from issue of the much awaited Boeing Dreamliner 787, part of the TAP was also given a positive signal by the CCEA. The officials also said that the issue of allowing foreign airlines to invest in the Indian carriers could discussed by the cabinet next week. The government has also announced an infusion of Rs.4000 crore during the current fiscal in the 2012-13 Budget.