Govt seeks Parliament approval to infuse ₹980 crore into Air India1 min read . Updated: 31 Jul 2018, 10:33 PM IST
The government has sought parliament approval to inject 980 crore in Air India during 2018-19, after stake sale efforts failed
New Delhi: The government has sought the Parliament’s nod for infusing ₹ 980 crore equity in debt-ridden national carrier Air India, which is struggling to meet its payment obligations.
The proposal is part of a total gross additional spending of ₹ 11,698 crore for which approval has been sought from the Parliament. However, the net impact on the budget will be ₹ 5,951 crore as the rest will be met through savings.
Data separately released by the Controller General of Accounts showed a healthier fiscal situation in the April-June period with the government exhausting 68.7% of the full-year fiscal deficit target against 80.8% during the same period a year ago.
The move to bring fresh equity into Air India comes at a time when a few banks and jet-leasing firms have issued the “first reminder" to clear outstanding dues. Mint reported on Tuesday that the airline had sought an equity infusion of ₹ 2,121 crore from the government as part of an ongoing bailout package and that the company was committed to pay all outstanding dues within a fortnight.
The company’s accumulated debt stands at ₹ 48,781 crore at the end of March 2017. Air India had recently failed to attract investor interest when the government had put it on the block as part of its strategy to sell state-owned loss-making enterprises. High jet fuel price and the government’s decision to retain a 24% stake post-sale, dampened investor enthusiasm.
Air India has already received ₹ 650 crore from the government in this fiscal year for meeting operational expenses. In the three years up to 2017-18, the company had received an infusion of ₹ 7,565 crore.