Govt's equity infusion plan in AI likely to take shape next week
New Delhi: The government's efforts to
strengthen Air India through equity infusion may take a final
shape next week when a Group of Ministers would discuss its
financial problems and the steps the national carrier has
taken to cut costs and enhance revenues.
Also, a meeting of the Committee of Secretaries (CoS),
headed by Cabinet Secretary K M Chandrasekhar, on November 17
will take up two crucial issues facing the civil aviation
sector — whether to allow foreign airlines to invest in their
Indian counterparts and whether to raise the foreign direct
investment cap.
The Committee would also review the overall FDI policy in
relation to a host of other sectors as well.
The Group of Ministers, headed by Finance Minister Pranab
Mukherjee, would meet for the second time on November 12 to
discuss in-depth the financial problems faced by Air India as
well as the aviation sector in general.
At its first meeting last month, the GoM had made it
clear to the ailing national carrier that any assistance by
the government, including equity infusion, should be matched
by it through cost-cutting and revenue enhancement measures.
The recommendations of the GoM on financial assistance
to the airline would have to be ratified by the Union Cabinet.
The GoM was briefed in the previous meeting on the
airline's financial restructuring and turnaround programme,
under which it plans to reduce costs by Rs 3,000 crore and
raise revenues by Rs 2,000 crore annually.
Bureau Report