Air India has got Rs 800 crore from the Union Ministry of Civil Aviation. It is the first tranche of the sum assured to Air India this financial year as part of the turnaround plan to infuse equity for the revival of the cash-strapped national carrier. The government reviewed the performance of the airline and is satisfied with the feedback it has received, an official concerned said.
As per the norms, the government has released 16 per cent of the budgeted amount to Air India. The airline was allocated Rs 5,000 crore as equity infusion in the Union Budget this fiscal. The Finance Bill is yet to be passed in this regard.
Of the Rs 800 crore released, Rs 500 crore would be utilised by the airline to clear dues of oil companies. The remaining resources would be used for payment of interest on non-convertible debentures (NCDs) issued last year. The remaining amount of Rs 4,200 crore allocated in the Budget to Air India would be released on a quarterly basis.
Last year, the Cabinet had approved a turnaround plan for Air India and sanctioned equity infusion of Rs 30,000 crore over a period of nine years starting 2012-13. The government had also agreed to give a guarantee for the airlineÂ’s debt restructuring plan.
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