The government on Tuesday said losses made by national carrier Air India could be around 7,853 crore rupees in financial year 2011-12.Civil Aviation minister Ajit Singh said induction of upfront equity of 6,750 crore rupees, including 1,200 crore rupees provided in the budget of 2011-12 was part of the government's financial package to Air India.Responding to a question in the Lok Sabha, Mr Singh said an equity for cash deficit support of 4,552 crore rupees till 2021 and equity for already guaranteed aircraft loan of 18.929 crore rupees till financial year 2021 had already been approved.

The Minister informed that government guarantee for repayment of principal amount and payment of interest of the non-convertible debentures of 7,400 crore rupees proposed to be issued to financial institutions like LIC and banks which will be used to repay part of working capital loans, had also been approved.