First tranche of AI equity infusion by Dec: Patel

Air India is likely to receive about Rs 800 crore as the first tranche of equity infusion from Govt.

Air India is likely to receive about Rs 800 crore as the first tranche of equity infusion from the Government by December,Civil Aviation Minister Praful Patel said.

In turn,the Government would review the progress the national carrier makes in implementing a series of cost-cutting and saving enhancement measures on a monthly basis,he told reporters on the sidelines of a function.

“We will see the first tranche of equity infusion in Air India coming in by December,” Patel said,adding that the national carrier was initially looking at around Rs 800 crore for the first two months,Patel said.

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His announcement came two days after a meeting of the Group of Ministers,headed by Finance Minister Pranab Mukherjee,on the financial health of Air India and the cost- pruning measures it was implementing.

The GoM also approved an interim plan till March which would have to be implemented by the ailing carrier to justify Government’s support.

Patel had earlier said that government assistance in terms of equity infusion or loans would come in tranches,depending on the airline making a recovery by implementing the cost-cutting measures.

“We have decided to put more money but will review progress (of cost-saving measures by the airline) every month,” he said.