In what could be a big boost for the national carrier, the Union cabinet on Thursday approved the restructuring of the cash-trapped Air India. Giving nod to the plan of the restructuration, the cabinet deferred the decision of FDI in aviation sector for a week.
It is expected that the aviation minister Ajith Singh will brief the media extensively in the evening.
The decision of the Cabinet Committee on Economic Affairs (CCEA) regarding the Financial Restructuring Plan (FRP) is expected to improve the plight of the national carrier. The FRP had been earlier approved by an SBI-led 18 banks’ consortium last month.
As part of Air India’s restructuring, the government has decided to infuse Rs 4,000 crore as additional equity during the current fiscal. This would raise the airlines’ equity base to Rs 7,345 crore.