Aviation minister criticises slow equity infusion to Air India

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By TESTCustomwebLP TESTCustomwebLP December 4, 2013 11:34

Aviation minister criticises slow equity infusion to Air India

Ajit Singh, Minister for Civil Aviation, Government of India, has criticised the government’s failure to fund Air India’s revival plan as approved by it, serving only to aggravate its financial problems.

“Equity infusion by the government has neither been timely, nor adequate. To meet its working capital requirements with the support of government guarantee, Air India has had to seek short-term working capital loans from the banks. This would result in additional interest burden on the company,” Singh told the Parliamentary Consultative Committee at a meeting in Panaji.

The government has infused Rs 12,200 crore into Air India and Singh said “there has been a shortfall in equity infusion to the tune of Rs 3,574 crore, leading to a liquidity crunch”.

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By TESTCustomwebLP TESTCustomwebLP December 4, 2013 11:34
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