New Delhi: Finance minister Pranab Mukherjee has asked National Aviation Co. of India Ltd-run Air India to look at alternative ways of restructuring its debt of Rs21,000 crore, a senior government official said.
Aviation minister Praful Patel, with newly appointed board members, met Mukherjee on Thursday.
Patel, after the meeting, said organizational and financial restructuring will take place though “nothing has been decided as of now” but things are “moving in the right direction”. The ministry will now prepare a plan which has to be cleared by a group of ministers before Rs1,200 crore is released for the airline, the government official quoted above said, adding it could take as much as three months for it to happen.
Indian firms raise $2.8 bn via ECBs in Apr
New Delhi: Indian companies raised $2.81 billion through overseas borrowings in April, the second highest monthly collection since the beginning of the last financial year. According to data released by the Reserve Bank of India (RBI), Indian companies raised a record $4.32 billion in March.
Separately, Pronab Sen, chief statistician of the Indian government, said the government would have to think of steps to insulate the exchange rate from the fallout of a surge in inflows. “I don’t think coping mechanisms are going to work, we have to start thinking seriously about insulations mechanism,” Sen said at a round table on rupee appreciation organized by PHD Chamber of Commerce and Industry.
Moves to insulate the economy from the fallout of a surge in capital inflows could be temporary and based on how painlessly the measures could be reversed, Sen said. The government would have to think of using fiscal policy measures such as a calibration of tax rates to supplement monetary policy in shielding the economy, Sen said.