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New Delhi: The government on Tuesday asked the Parliament's authorization to inject 9.8 billion rupees ($ 142.87 million) into the troubled national carrier Air India during the year. Exercise in progress, after efforts to find a buyer for 76% of the capital.
The government has "sought funds for the injection of equity into Air India as part of its recovery plan," said a statement tabled in the lower house of parliament.
To finance the injection of capital into Air India and other sectors, the government sought Parliament's approval for an additional net expenditure of Rs 59.51 billion, in addition to 24.42 billion rupees budgeted for 2018/19.
The government put on hold the plan to sell a majority stake in the besieged airline because of the lack of interest from bidders, in the last setback in its ambitious efforts to save the carrier which has been kept afloat for years using taxpayer funds.
Image of representation. Reuters
The sale was also essential to the plans of Prime Minister Narendra Modi to help keep the budget deficit at 3.3% of GDP, a goal already under the pressure of gifts to farmers and other benefits before the 2019 national elections.] A source from Air India said Reuters Monday that she had asked for 21.21 billion rupees ($ 309 million) of additional own funds the government for 2018/19 to make outstanding payments to its suppliers.
Minister Jayant Sinha said last month that the government will continue to support the financial needs of loss-making companies while it is working on alternatives. The minister has not given a specific timetable for a new plan.
Air India, which employs some 27,000 people, said this month that it was looking for a short-term loan of 10 billion rupees ($ 148 million).
The carrier had a debt of 487.81 million rupees ($ 7.16 billion) as of March 31, 2017.
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