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Govt to take up AI equity infusion after RBI report

india Updated: Oct 28, 2011 19:50 IST

The issue of additional equity infusion of Rs 6,600 crore in Air India and acquisition plan for 27 Boeing 787 Dreamliner planes would be referred to the Union Cabinet after the RBI gives its views on debt restructuring plan for the ailing national carrier.

The decision was taken today at a meeting of a Group of Ministers headed by finance minister Pranab Mukherjee.

"A report on (Air India's) debt restructuring prepared by the Committee of Officers will be reviewed by the RBI within a week. Only after that will any decision be taken," civil aviation minister Vayalar Ravi told reporters here after the meeting.

The Civil Aviation Ministry has already moved a proposal for additional equity infusion of Rs 6,600 crore for the ailing carrier to enable the airline clear its massive dues. Government has already infused equity worth Rs 2,000 crore in the last two years.

The debt-ridden carrier has outstanding loans and dues of Rs 67,520 crore, of which Rs 21,200 is working capital loan, Rs 22,000 crore is long-term loan on fleet acquisition, Rs 4,600 is vendor dues and an accumulated loss of Rs 20,320 crore, latest official figures showed.

Once the RBI reviews the report by the Committee of Officers, the issues pertaining to equity infusion and also the acquisition of Dreamliners would be tabled before the Cabinet, Ravi said.

Air India Board had in August decided to go ahead with the acquisition of B-787s and sought government nod for it. As per the original 2005 order, the airline wanted 27 aircraft, the list price of which stood at $185.2 million last year. The minister had earlier said the airline did not have the money to go for so many aircraft at present.