The government is likely to contribute only a part of the Rs 13,000 crore bailout package sought by Air India for restructuring the national carrier, according to sources.
Air India has asked for an equity infusion of about Rs 2,500-3,000 crore and a soft loan of Rs 10,000 crore for five years in the first meeting of Committee of Secretaries (CoS) aimed at its restructuring on Saturday.
Of the total amount, while the government may make only a fractional contribution, a major part of this package is likely to be through partial disinvestment of government equity or through initial public offering of the carrier, the sources added.
The spokesperson, however, denied that there were any plans for a Rs 20,000-crore package for the airline.
The Finance Ministry would decide on the financial help to be extended to Air India over the next fortnight and present it before the second meeting of the CoS on August 29.
The losses of the carrier went up to about Rs 7,200 crore for 2008-2009.