Govt asks Parliament to approve the equity injection of Rs 980 cr in Air India

New Delhi: The government on Tuesday asked the Indian Parliament's approval for Rs 980 crore as an additional subsidy for the equity injection in Air India that is struggling with a financial crisis. [19659002] of Rs 11,697.92 crore, for which an approval has been requested from Parliament. The grant was requested as part of the equity injection into Air India as part of the Recovery Plan (TAP), in accordance with the document filed with Lok Sabha for an additional grant application for 2018-2019.

"Given the refund of savings available in the grant revenue section, the expense … (980 crores of rupees) will not result in additional cash outflows", was -she adds.

The grant was requested under the Ministry of Civil Aviation. According to the document, the net disbursement amounts to 5,951.22 rupees rupees and the additional gross expenditure amounts to 5,745.68 rupees rupees.

In addition, the government has requested a symbolic provision of Rs. 1.02 to allow the re-appropriation of savings in case of new service or new service instrument. The strategic sale of Air India shares by the government failed to take off in May but remains committed to divestment.

Last week, the ministry said that Air India had received 27,195.21 rupees of capital under the TAP and the financial restructuring plan. ) approved in 2012.

During the current fiscal year, the state-owned airline received an equity injection of Rs 650 crore until June. TAP and a Financial Restructuring Plan (PRF) were approved for Air India by the previous UPA scheme in 2012.

All government guaranteed loans and interest are paid by the government through capital injection own in the airline. Under the FRP, the high cost of working capital loans has been converted into long-term debt with lower interest rates to reduce the financial burden for Air India

"The TAP / FRP includes budget support rising to Rs 30,231 crore spread over 10 years, that is to say until the 2020-21 fiscal year and also equity for the principal / interest payment of non-convertible debentures.

"Air India received an equity injection of Rs 27,195.21 crore to date," State of the Air Civilian Jayant Sinha told Lok Sabha last week that "at the end of March 2017, the national carrier had a debt burden of more than Rs 48,000 crore.