Aviation Min to move proposal for turnaround of AI
Press Trust of India / New Delhi Aug 29, 2009, 14:07 IST
The Civil Aviation Ministry would soon move a proposal for financial assistance to and restructuring of cash-strapped Air India.
This was decided at the high-level meeting of Committee of Secretaries, headed by Cabinet Secretary K M Chandrasekhar, which met here today to review the turnaround plan of the national air carrier.
Official sources said the CoS directed the Civil Aviation Ministry to move a proposal for consideration of the Cabinet in consultation with the Finance Ministry.
While Air India made a presentation on its turnaround plan to the CoS, the Finance Ministry also made projections on how the ailing national carrier could be helped by the government to enable it come out of the financial crisis.
The Committee felt that Air India needs to adopt more aggressive cost reduction measures and "examine its strategic position with respect to its shareholders objectives," the sources said.
While the government may make only a partial contribution as equity infusion to the airline, a major part of resource mobilisation is likely to be through options like partial divestment of government equity, issuance of initial public offer or infrastructure bonds, sources said.
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