Mumbai: National air-carrier Air India is likely to receive government approval for a Rs.1,200 crore equity infusion by month- end, Civil Aviation Minister Praful Patel said on October 12.
“The note for the Cabinet Committee on Economic Affairs (CCEA) has been moved…I think by the end of October, we will be getting the clearance for the second tranche of Rs. 1,200 crore (equity infusion),” Patel told reporters in Mumbai.
The Minister, however, said there was no cap on government’s funding to the national airline, adding the Committee of Secretaries (CoS) has already discussed the issue.
After pumping in Rs. 800 crore in the national airline last year, the government had earlier this year announced an additional Rs. 1,200 crore equity infusion in Air India to help strengthen its balance-sheet.
“After the Rs. 2,000 crore infusions, if required and as per SBI Cap advice, we can infuse further equity,” Patel said.
Patel said the airline has seen significant improvements in its revenue on the back of an encouraging growth in traffic this year.