Cash-strapped Air India is likely to get more relief as a Group of Ministers (GoM) on Monday asked for expediting the release of Rs 1,732 crore in favour of the ailing carrier. This includes an equity infusion of Rs 1,200 crore and payment of Rs 532 crore for operating VIP and rescue flights.
“The GoM has asked to expedite the procedure for the formation of a Cabinet note for equity infusion of Rs 1,200 crore and formation of engineering and ground handling strategic business units,” said Air India Chairman and Managing Director Arvind Jadhav.
The provision for Rs 1,200-crore equity infusion was made in the budget for current financial year.
“It was decided that the dues on account of VIP use of Air India aircraft as also the sum claimed on account of evacuation operations be paid to the airline, providing for such payments in the supplementary budget,” said civil aviation ministry release.”