The Centre on Tuesday sought approval from Parliament to sanction Rs 980 crore as a supplementary grant to invest in equity shares for Air India during the 2018-’19 financial year. The government has “sought funds for infusion of equity in Air India under its turnaround plan,” the government told Lok Sabha, according to Reuters.
The amount, sought under the Civil Aviation Ministry’s head, is part of the total gross additional expenditure of Rs 11,697.92 crore, which also requires Parliamentary approval, PTI reported. “Taking into account the surrender of savings available in the revenue section of the grant, the expenditure [of Rs 980 crore] will not entail any additional cash outgo,” the statement read.
The government has also sought a token provision of Rs 1.02 crore for enabling re-appropriation of savings.
Last week, the government told the Lok Sabha that Air India has received Rs 27,195.21 crore worth of equity infusion under the turnaround plan and the Financial Restructuring Plan since 2012. This year, the airline received an equity infusion of Rs 650 crore up to June.
On Monday, reports said that the national carrier had requested additional equity from the government worth Rs 2,121 crore for the financial year 2018-’19 in order to pay off its vendors. Air India owes about Rs 1,800 crore to its vendors.
Earlier this year, the Centre had failed to find a buyer for its 76% stake in the ailing airline.