The airline’s operations have hit a snag due to financial problems and rising dues
Air India had requested an equity infusion of Rs 4,277 crore in the current financial year (2015-16) but the government has only provided an amount of Rs 2,500 crore in the Budget.
Nandan took over as chief of the carrier in August 2011, in a financial year when its losses had widened to Rs 7,559 crore, and was given a three-year term.
In the past three years, government has infused a total of Rs 12,200 crore into the national carrier but "there has been a shortfall in equity infusion to the tune of Rs 3,574 crore, leading to a liquidity crunch", Civil Aviation Minister Ajit Singh said.
The government today deferred a decision on proposal to revive sick public sector unit, Scooters India Ltd (SIL). "The Cabinet has deferred the proposal," a source said.
India will infuse Rs 30,000 crore in state-run carrier Air India by 2020, Civil Aviation Minister Ajit Singh told reporters on Thursday.
The cabinet on Wednesday approved a financial restructuring plan for national carrier Air India, which includes equity infusion by the government and restructuring of USD 4 billion in debt.
In a much-needed succour to the troubled micro-finance space, West Bengal-based micro lender Bandhan today said it has got a Rs 135-crore equity infusion from the investment unit of the World Bank.