On Thursday, the government of India has sought approval from the Parliament for equity infusion of worth Rs. 2345 crore into Air India and another Rs. 1300 crore for Air India Asset Holding.
As a part of the efforts to restore the financial fortunes of Air India, the government has decided to the debt of Rs. 29,000 crore to the Air India Asset Holding company, which is a special purpose vehicle.
In the second term of Supplementary Demands for Grants 2018-19 tabled by the Finance Minister Arun Jaitley in the Lok Sabha, seeks approval of Rs. 2345 crore equity infusion into the national carrier under a turnaround plan.
Meanwhile, Parliament’s nod has also been sought for offering grant-in-aid of Rs. 1300 crore to Air India Asset Holding.
Earlier this year, the strategic stake sale offer of the government for Air India has failed to attract any bidders and since the time various other options are being explored to improve the financial condition of Air India.
The national carrier is staying afloat on a bailout package that was extended by the previous UPA government.
According to the turnaround plan, Air India is likely to receive up to Rs. 30,231 crore from the government, which is subjected to meet certain performance thresholds. The 10-years bailout package for Air India began in 2012.
The Indian government has sought the approval of the Parliament for the additional gross expenditure of Rs. 85948.86 crore for the current financial year ending March 2019.