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Air India to get Rs 2,000 cr more as equity for revival

FM says there will be no additional borrowing in the remaining part of the current fiscal

Press Trust of India  |  New Delhi 

The government today earmarked an additional Rs 2,000 crore for infusion in Air India as part of the state-carrier's financial restructuring.

There will be equity infusion of Rs 2,000 crore in Air India as part of turnaround plan and financial restructuring plan, as per the Supplementary Demand of Grants tabled in the Lok Sabha by Finance Minister P Chidambaram.

Later, he told reporters that the government will be able to accommodate the enhanced outgo within the present limit and there would be no additional borrowing in the remaining part of the current fiscal.

"Rs 28,500 crore of petroleum subsidy, about Rs 2,000 crore for infusion of equity in Air India and Rs 300 odd crore for some small items. So this amount we think we can accommodate within the present borrowing limit," Chidambaram told reporters outside Parliament.

"We don't think at this moment we need to borrow anything more than what is indicated," he added.

Earlier this year, the government approved restructuring plan for the cash-strapped carrier. As part of that, the government had announced infusion of Rs 4,000 crore in the Union Budget, 2012-13.

The SBI-led consortium of 19 banks had approved the financial restructuring plan (FRP) which includes debt restructuring of Rs 18,000 crore by the banks and a committed equity infusion by the government.

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First Published: Fri, December 07 2012. 20:52 IST