Air India received a capital infusion of Rs 30,520 from fiscal year 2012 onwards: Government
New Delhi, December 5 () Debt-laden Air India received a capital injection of Rs 30,520.21 million from fiscal year 2011-12 to date, the government said Thursday and reiterated that it is committed to the divestment of the national airline.
In April 2012, the then central government approved a Change Plan (TAP)/Financial Restructuring Plan (FRP) to revive Air India, which has been in red since the merger of Indian Airlines in 2007-08.
To prepare for the divestment, the government is implementing a strategic plan, which includes a financial package and focuses on increasing operational efficiency, the State Minister of Civil Aviation, Hardeep Singh Puri, said Thursday.
The main components of the 2018-19 financial package included a cash assistance of Rs 3,975 million rupees to Air India, which includes Rs 1,630 million rupees already infused into the airline in 2018-19.
Another component was to provide a government guarantee of Rs 7,600 million rupees, which includes Rs 3,000 crore already granted to Air India in 2018-19, to increase the new debt for the payment of stretched obligations.
Air India received a capital infusion of Rs 30,520.21 crore to date of fiscal year 2011-12, which includes financial support under TAP/FRP and cash support in fiscal year 2018-19, he said in a written response to Lok Sabha.
The net loss of Air India in 2018-19 is provisionally estimated at Rs 8,556.35 crore, said the minister, adding that the government is committed to the divestment of Air India.
According to the minister, the preparation of the Preliminary Information Memorandum (PIM) to invite the Expression of Interest (EoI) for the divestment of Air India is in process. The Air India Specific Alternative Mechanism (AISAM) has approved the restart of the process for 100 percent government participation in Air India along with Air India Express and operator participation in the joint venture AISATS. RAM ANU