After giving Rs 800 crore to Air India, the government plans to infuse Rs 1,200 crore more as equity in the national carrier in the current fiscal.
However, the amount will be released after Air India achieves specific cost-cutting targets, Civil Aviation Minister Praful Patel said in a written reply to a Rajya Sabha query today.
"The government has also appointed four non-official part time directors on the board of NACIL in order to render professional and managerial advice to the board," the minister added.
Patel said under the turnaround plan of the national carrier, projected benefits of Air India during the last fiscal were Rs 1,911 crore and it has achieved savings of Rs 753 crore, Patel said.
The turnaround plan of NACIL is being continuously monitored by government and further financial assistance has been linked with achievement of specified target, he added.
The components of the restructuring plans of NACIL including fleet rationalisation, rationalisation of routes and manpower, operationalisation of strategic business units and improving services are at various stages of implementation.
The progress of the plan is being reviewed by the government and GOM (Group of Ministers) on continuous basis, the minister said.
Losses of Rs 7,774 crore have been incurred by NACIL during financial years 2007-08 and 2008-09, respectively.
