November 15, 2009 11:06 AM

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Air India to get an equity infusion of 800 crore rupees

In a bid to give fresh lifeline to the cash-strapped Air India,the national carrier is to get an equity infusion of 800 crore rupees by December . Civil Aviation Minister Praful Patel today said this on the sidelines of a function in New Delhi today.Our correspondent reports, the government on Thursday had agreed to inject 2,000 crore rupees in Air India this fiscal in a phase-wise manner of 400 crore rupees per month. This is subject to the condition if the airline cuts costs and increases revenue. The Pranab Mukherjee-headed Group of Ministers (GoM) has decided to do a monthly review of airline's performance before giving the next lot of 400 crore rupees.On the issue of relaxing the foreign direct investment, FDI, norms in the aviation sector,Mr. Patel said a decision would be taken after assessing what the industry needed. The minister said that it is a decision which would be taken after discussions with other ministries and agencies. He, however, did not specify any time line for on the same.

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