The government has provided cash-strapped Air India with an advance equity infusion of Rs 500 crore during the current year, Parliament was informed today.
"Air India has been provided ad hoc release of equity of Rs 500 crore in two instalments of Rs 250 crore each during the current year," Minister of State for Finance Namo Narain Meena said in a written reply in the Rajya Sabha.
Last month, the Finance Ministry released around Rs 265 crore to help Air India partially clear interest burden to banks.
The cash-strapped national carrier has interest burden of Rs 660 crore for the months of April to June.
Air India has borrowed loans from a consortium of 22 banks led by SBI.
Bank of Baroda, Punjab National Bank and Bank of India are the three biggest lender of the airline. Central Bank and HDFC are the other key lenders.
Air India has defaulted on interest dues on the working capital debt which is put at Rs 22,100 crore.
The banks have given Air India a the deadline till July 31 to pay its interest dues, failing which it will be classified as a non-performing asset.
If a company fails to pay instalment (principal and interest) for three consecutive months, lenders have the right to classify the loan as a non-performing asset (NPA).
A Group of Ministers had given an approval in principle for additional equity infusion of Rs 1,200 crore and VVIP travel allowance of Rs 532 crore for Air India.
