The government has approved a Turn Around Plan, TAP and Financial Restructuring Package, FRP with a 30 thousand crore rupee infusion over a nine year period for cash strapped Air India. The plan envisages a massive fund infusion into the Airline, debt restructuring and higher operational efficiency.

Briefing the media in New Delhi yesterday, Civil Aviation Minister Ajit Singh said the Cabinet Committee on Economic Affairs has approved an upfront equity support of 6,750 crore rupees to Air India.

Mr. Singh said, Air India will also be able to gain further equity for cash deficit support of 4,552 crore rupees till 2021. He said the Airline will also be able to raise equity for the already guaranteed aircraft loan of 18,929 crore rupees till 2021. Mr. Singh said that Air India has been allowed to raise government guaranteed non-convertible debentures of 7,400 crore rupees.