The Indian government has asked local airlines to consider a strategic investment in the cash-strapped African carrier Air Mauritius, The Economic Times has reported.
The move comes after the external affairs ministry received a request from Mauritian government to invest in the troubled flag carrier, the report cited sources as saying.
Air Mauritius is battling a severe financial crisis, with a negative equity of $237 million (nearly Rs 2,033 crore), the report said.
The government also asked Indian airlines to increase the number of flights to Mauritius’ capital Port Louis.
Air Mauritius has significantly reduced its flights to India and the government has asked the Indian carriers to cover the shortfall, the report said.
The troubled airline is also planning to sell some equity to raise funds and Indian carriers may consider the option, it added.
Moneycontrol couldn't verify the report independently.
Airport Holdings Ltd (AHL), which is controlled by the island nation’s government, holds a 99 percent stake in Air Mauritius. Prime Minister Navin Ramgoolam recently said the carrier was technically insolvent.
Prime Minister Narendra Modi visited Mauritius earlier this year. During his visit, Ramgoolam conferred the country's highest honour 'The Grand Commander of the Order of the Star and Key of the Indian Ocean' on Modi, making him the first Indian recipient of the award.
India-Mauritius ties have been elevated to the status of “enhanced strategic partnership,” Modi had said. "We have always stood by each other. Be it health, space or defence, we are moving ahead with each other," he said.
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