Back to Career News

INR 300 bn Fund-Infusion Proposal for Air India Rejected by FinMin

September 01, 2018

INR 300 bn Fund-Infusion Proposal for Air India Rejected by FinMin
Due to the lack of a clear turnaround plan, the Finance Ministry has turned down a fund-infusion proposal of INR 300 billion for Air India. The Civil Aviation Ministry was seeking funds to clear the massive debt of the national carrier and make payments to its staff and vendors. 

The Finance Ministry has directed the airline to transfer its subsidiaries as well as non-core assets to a “Special Purpose Vehicle” (SPV). Although its total debt stands at Rs. 500 billion, nearly Rs. 220 bn of the same has been tagged “unsustainable” which means it can’t be cleared with cash flow income.

Photo credit: cvtperson on VisualHunt.com / CC BY-SA

Recommended for you ...

Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners
Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners

September 26, 2024

Banks Report Over 15% Growth in New Credit Card Additions: RBI Data
Banks Report Over 15% Growth in New Credit Card Additions: RBI Data

September 26, 2024

National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank
National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank

September 25, 2024

Chat on WhatsApp