Press Esc to close
Monday 25 July 2016
News updated at 11:59 PM IST
Weather
Max: 26.4°C
Min : 19.6°C
In Bengaluru
Generally cloudy
Breaking News

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
A wild elephant crosses a highway in search of dry land after floods hit Kaziranga National Park...

A wild elephant crosses a highway in search of dry land after floods hit Kaziranga National Park...

Bollywood actress Kangana Ranaut displays a creation by designer Manav...

Bollywood actress Kangana Ranaut displays a creation by designer Manav...

Santosh Darod of Kollapu and Sandeep Sharma of MEG Bengaluru wrestles during National level...

Santosh Darod of Kollapu and Sandeep Sharma of MEG Bengaluru wrestles during National level...

NSUI members burn effigies of Odisha CM Naveen Patnaik and Health Minister Atanu Sabyasachi Nayak..

NSUI members burn effigies of Odisha CM Naveen Patnaik and Health Minister Atanu Sabyasachi Nayak..

Mahila Congress members holding a protest against price hike during Punjab Pradesh Congress...

Mahila Congress members holding a protest against price hike during Punjab Pradesh Congress...

Shreeganesh Biradar 4 year old, recorded India book in recites in a minute more than 51 spelling...

Shreeganesh Biradar 4 year old, recorded India book in recites in a minute more than 51 spelling...

People use a banana raft to commute in a flooded area after heavy rains in Alipurduar...

People use a banana raft to commute in a flooded area after heavy rains in Alipurduar...

People participate in 'Walk for Indian Armed Forces' rally to support them, in Kolkata...

People participate in 'Walk for Indian Armed Forces' rally to support them, in Kolkata...

Actor Sonu Gowda near a pothole art created by artist Baadal Nanjunda Swamy in Bengaluru...

Actor Sonu Gowda near a pothole art created by artist Baadal Nanjunda Swamy in Bengaluru...

Actress Aindritha Ray performing during Shatha Sambrama -University of Mysore Centenary...

Actress Aindritha Ray performing during Shatha Sambrama -University of Mysore Centenary...

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