Govt likely to contribute only part of AI bailout package

New Delhi, July 27 (PTI) Indian 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. PTI DG
anu
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