Air India equity increase bid

Air India will seek an extra Rs 1,600 crore as equity in the current fiscal year 2014-15, asking for Rs 7,100 crore instead of Rs 5,500 crore as per the original financial restructuring plan (FRP) approved by UPA. The additional funds in the coming Budget are being requested due to a shortfall of Rs 500 crore in the government’s equity infusion last fiscal; interest cost incurred by the airline to raise this amount as loan from banks; and the fluctuation in the dollar exchange rate from last year’s assumed value of Rs 40-45 when the FRP was approved.