Press Trust Of India / Belgaum Nov 15, 2009, 00:27 IST
Air India is likely to receive the first tranche of equity infusion by December, Civil Aviation Minister Praful Patel said today.
“We will see the first tranche of equity infusion into Air India coming in by December,” Patel told reporters on the sidelines of a function. The national air carrier was initially looking at around Rs 800 crore for the first two months, Patel added.
“We have decided to put more money, but will review the progress (of cost-saving measures taken by the airline) every month,” he said.
On the issue of relaxing the foreign direct investment (FDI) norms in the aviation sector, Patel said a decision would be taken after assessing what the industry needs. “On the FDI issue, the Government will take its decision based on the needs of the sector,” he said.
equity capital need not be increased at one go------equity can be increased every year for 4 or 5 years in instalments-----COMPANIES ACT DOES NOT PROHIBIT INCREASE OF EQUITY CAPITAL EVERY YEAR---if the entire money is given now it will be spent recklessly--MONEY SHOULD BE GIVEN IN INSTALMENTS AND EQUITY CAPITAL MUST BE INCREASED EVERY YEAR IN SMALL DOSES[IN INSTALMENT]
the entire money should not be paid now-----then airlines will forget all promises made and will again star SPENDING SPREE--money should be paid in instalments like EMI -----huge amount of money paid at one go is not desirable--LET THERE BE A MONTHLY INSTALMENT FOR 36 MONTHS.
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