Press Esc to close
Monday 04 May 2015
News updated at 3:20 PM IST
Weather
Max: 33.4°C
Min : 21.6°C
In Bengaluru
Sunny day

Air India to get Rs 5k cr equity

New Delhi, Feb 28 (IANS)
File Image

Finance Minister P. Chidambaram Thursday proposed to pump in Rs.5,000 crore ($909.09 million) into ailing national carrier Air India in the next fiscal.

"Budgetary support of Rs.5,000 crore has been earmarked for equity infusion in Air India Limited," said the expenditure budget presented to the Lok Sabha for the financial year starting April 1, 2013.

In his last budget (2012-13), then finance minister Pranab Mukherjee had allocated Rs.4,000 crore for the flag carrier.

The flag carrier has received substantial support from the government to revive itself under the turnaround and financial restructuring plan which were approved by the union cabinet last year.

Under the turnaround and financial restructuring plans includes equity for cash deficit support of Rs.4,552 crore till fiscal 2021, equity for already guaranteed aircraft loan of Rs.18,929 crore till fiscal 2021.

The national carrier is expected to start generating profits from normal operations by the end of the current fiscal March 31, according to the Economic Survey 2012-13 tabled in the parliament Wednesday.

The survey said that the airline has been able to achieve targets set in the turnaround plan and is expected to become EBIDTA (earnings before income, taxes, depreciation and amoritisation) positive. 

Meanwhile, other government aviation bodies such as the Airports Authority of India (AAI) has been allocated Rs.42 crore, out of which Rs.32 crore has been earmarked for its project at Pakyong airport, Sikkim.

The aviation regulator, the Directorate General of Civil Aviation (DGCA), has been allocated Rs.30 crore to pursue its plan schemes.

In last year's budget AAI had been allocated Rs.280 crore, out of which Rs.80.52 crore has been earmarked for airport development in the northeastern states. While, DGCA had been provided Rs.60 crore.

Other provisions in the budget include Rs.10 crore for the Bureau of Civil Aviation, while Rs.5 crore has been provided to Hotel Corporation of India for renovation of its hotels and flight kitchen. 

Aero Club of India has been provided grants-in-aid of Rs.eight crore.


Go to Top

Photo Gallery
ANAHATA PAINTING EXHIBITION AT THE HAWELI

ANAHATA PAINTING EXHIBITION AT THE HAWELI

A staff member of the Madame Tussauds Tokyo wax museum prepares decorations

A staff member of the Madame Tussauds Tokyo wax museum prepares decorations

Mayweather, Jr. of the U.S. fights Pacquiao of the Philippines in the third round

Mayweather, Jr. of the U.S. fights Pacquiao of the Philippines in the third round

Memorial site for the former Nazi concentration camp in Dachau, southern Germany,

Memorial site for the former Nazi concentration camp in Dachau, southern Germany,

Collapsed and damaged houses are pictured from a helicopter after last week's earthquake

Collapsed and damaged houses are pictured from a helicopter after last week's earthquake

A Nepalese army personnel unloads aid from a helicopter after last week's earthquake

A Nepalese army personnel unloads aid from a helicopter after last week's earthquake

Israel's Veinberg Filanovsky performs in the individual final programme

Israel's Veinberg Filanovsky performs in the individual final programme

People take a selfie while covered in colour powder during the first color run called 'Alwan LB'

People take a selfie while covered in colour powder during the first color run called 'Alwan LB'

A Palestinian farmer rides his horse past an Israeli army tank during a military exercise

A Palestinian farmer rides his horse past an Israeli army tank during a military exercise

Child Laborers day

Child Laborers day

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523