Thu. Mar 28th, 2024
money

Air India received ₹650 cr in the form of equity infusion till June 30 of the current fiscal. However, starting from 2012 the government has infused a total of ₹27,195.21 cr in the form of equity.

‘Air India has received an equity infusion of ₹27,195.21 crore till date,’ Jayant Sinha, Ministry of State for Civil Aviation. By March 2017, Air India reported a debt of ₹48,000 cr.

TRP/FRP

The UPA government approved the Turnaround Plan (TRP) and Financial Restructuring Plan (FRP) in 2012. Under this an equity infusion of ₹30,231 cr was planned for a period of 10 years upto FY 2020-21.

In an interview earlier, Arun Jaitley criticised the refinancing schemes which, he said, could instead be utilized for social welfare sectors. He also pointed out that Air India’s market share fell from 19.4% in 2013 to around 13.3% in May 2017 in the domestic sector. This was due to private competition.

Disinvestment Plans

The disinvestment plans for Air India called for potential buyers to submit their bid by May 31. The sale offer however, failed to attract bidders for Air India. The government said that a 76% stake in the national carrier gathered ‘no interest‘ amongst buyers.

‘In view of volatile crude prices and adverse fluctuations in exchange rates, the present environment is not conducive to stimulate interest amongst investors for strategic disinvestment of Air India in immediate near future.The issue would be revisited once global economic indicators, including oil prices and forex conditions stabilise,’ Sinha said.

Air India back on track

Earlier this month, Piyush Goyal, the acting Finance Minister said that the government was taking efforts to make the airlines profitable, in order to attract bidders.

‘We are taking steps to strengthen Air India’s management practices and operational efficiencies so as to make it profitable again,’ Goyal told reporters. He assured that there would be a visible change in the next 18 months.

By Varsha Santosh

I like to learn more about the little complexities of life, money

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