Govt to inject Rs.30,000-crore in Air India, approved to restructure it

In the move to revive the debt-run Air India, the government has decided to infuse Rs.30,000-crore in the next eight years and to restructure of the debt. Air India has at present a consolidated debt of Rs.67,520-Crore.

The cabinet approved a financial restructuring plan for the national carrier, informed Civil Aviation Minister Ajit Singh to media.

In the financial restructuring plan, government would inject Rs.30,000-crore, sell minor stakes, transfer additional staff from Air India to other government department, restructuring the debts, inclusion of 27 dreamliners in Air India’s kitty, and enhancing the operational efficiency etc., he said.

According to Aviation department, at least 7,000 Air India staff will be transferred to its maintenance, repair and overhaul (MRO) subsidiary while another 12,000 staff will be transferred to transportation services.

The government has also made it clear that the MRO unit of Air India will be able to able to work for other airlines too.

--With Agencies Inputs--