NEW DELHI: Debt-laden Air India has received Rs 27,195.21 crore value fairness infusion until date from the government beneath the turnaround and fiscal restructuring plans licensed back in 2012. In the current financial year, the state-owned airline received an fairness infusion of Rs 650 crore up to June, minister of state for civil aviation Jayant Sinha instructed the Lok Sabha on Thursday.
A turnaround plan (TAP) in addition to a Financial Restructuring Plan (FRP) have been licensed for Air India by the previous UPA regime in 2012.
All government assured loans and pursuits thereon are being paid by the government by the use of fairness infusion into the airline, Sinha stated in a written answer.
The minister stated that beneath the FRP, high value of working capital loans had been transformed into long run debt wearing lesser rates of interest so as to cut back the financial burden on Air India.
"The TAP/ FRP contains budgetary toughen amounting to Rs 30,231 crore unfold over 10 years ie. up to FY 2020-21 and likewise fairness toughen for the fee of fundamental/ passion of the non-convertible debentures.
"Air India has received an fairness infusion of Rs 27,195.21 crore until date," Sinha stated.
At the end of March 2017, the nationwide provider had a debt burden of greater than Rs 48,000 crore.
The government's proposed strategic disinvestment of Air India did not take off in May.
Against this backdrop, Sinha stated the government stays dedicated to the disinvestment of Air India.
"In view of volatile crude prices and antagonistic fluctuations in trade rates, the present setting is not conducive to stimulate passion amongst investors for strategic disinvestment of Air India in rapid near long term.
"The issue would be revisited once global economic indicators, including oil prices and forex conditions stabilise," the minister stated.
A turnaround plan (TAP) in addition to a Financial Restructuring Plan (FRP) have been licensed for Air India by the previous UPA regime in 2012.
All government assured loans and pursuits thereon are being paid by the government by the use of fairness infusion into the airline, Sinha stated in a written answer.
The minister stated that beneath the FRP, high value of working capital loans had been transformed into long run debt wearing lesser rates of interest so as to cut back the financial burden on Air India.
"The TAP/ FRP contains budgetary toughen amounting to Rs 30,231 crore unfold over 10 years ie. up to FY 2020-21 and likewise fairness toughen for the fee of fundamental/ passion of the non-convertible debentures.
"Air India has received an fairness infusion of Rs 27,195.21 crore until date," Sinha stated.
At the end of March 2017, the nationwide provider had a debt burden of greater than Rs 48,000 crore.
The government's proposed strategic disinvestment of Air India did not take off in May.
Against this backdrop, Sinha stated the government stays dedicated to the disinvestment of Air India.
"In view of volatile crude prices and antagonistic fluctuations in trade rates, the present setting is not conducive to stimulate passion amongst investors for strategic disinvestment of Air India in rapid near long term.
"The issue would be revisited once global economic indicators, including oil prices and forex conditions stabilise," the minister stated.
Air India received Rs 27,195 crore equity infusion, says Jayant Sinha
![Air India received Rs 27,195 crore equity infusion, says Jayant Sinha]()
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July 26, 2018
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