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Tag: Financial Restructuring Plan

Loss Making National Carrier Air India Enjoys Boon Of Financial Breather Package

[New Delhi]Loss Making National Carrier Air India Gets Boon Of Financial Breather, Bailout, Package for Revival
Central Government has approved financial bailout package for revival of Air India.
In view of the huge losses suffered by Air India (a Government of India enterprise) for the Continuous years 2007-08 to 2010-11, and its mounting debt burden, the Government decided to formulate a Turn Around Plan and a Financial Restructuring Plan to improve the operational and financial performance of Air India.
The Government approved Air India’s Turn Around plan (TPA) and Financial Restructuring Plan (FRP) on 12.4.2012 that provided for infusion of additional equity by the Government cost reduction and improved operational performance. Union Minister of Finance,Arun Jaitley Informed to a question in Lok Sabha today that The Details Of Above financial support is as under:
[A]Induction of upfront equity of Rs. 6,750 crore;
[B]Equity for cash deficit support of Rs. 4,552 crore from Financial Year 2012-13 till Financial Year 2017-18;
[C]Equity for already guaranteed aircraft loan of Rs. 18,929 crore till Financial year 2012;
[D]Government of India guarantee for repayment of principal amount and payment of interest on the Non Convertible Debenture (NCDs) of Rs. 7,400 crore proposed to be issued by Air India to Financial Institutions, Banks, LIC and EPFO.