Wednesday October 21, 02:15 AM

Source: Indian Express Finance

GoM to look into AI equity infusion

By fe Bureaus
A group of ministers (GoM) will consider on Wednesday Air India s demand for Rs 5,000-crore equity infusion and its financial restructuring plan. The GoM on the civil aviation sector, headed by finance minister Pranab Mukherjee is meeting on Wednesday as the government has agreed to support Air India in its restructuring process, civil aviation minister Praful Patel said on Tuesday. The GoM will also consider a presentation of Air India on its restructuring plan. Air India is broadly looking at reducing costs by about Rs 3,000 crore and enhancing revenues by Rs 2,000 crore annually, which could direct it to the recovery path, Patel said. The government is expected to infuse Rs 3,000-crore equity into Air India in the first year. The civil aviation ministry is preparing a note, which will be sent to the Cabinet Committee on Economic Affairs (CCEA) for approval. The cabinet secretary-headed Committee of Secretaries has already given its approval for providing Rs 5,000 crore as equity to Air India over the next three years. The minister said, he had met the employees unions representatives in Mumbai last week and asked them to extend support. The cash-strapped airline required around Rs 5,000 crore as additional equity infusion.