YS Sujana Chowdary Updates from Rajya Sabha. Questions Debates and Current News
Thursday, March 15, 2012
Debt Restructuring Plan Of Air India
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
UNSTARRED QUESTION NO-337
ANSWERED ON-15.03.2012
(a) whether it is a fact that GoM has cleared Rs.21,000 Crore debt restructuring plan for Air India;
(b) if so, the details thereof; and
(c) the reasons therefor?
ANSWER
The Minister of Civil Aviation (Shri Ajit Singh)
(a),(b) and (c): The GoM in the meetings held on 28.10.2011 and 07.02.2012, accepted the recommendations of the a Group of Officers constitued by GoM to vet the Financial Restructuring Plan/Turn Around Plan (FRP/TAP) of Air India which included the conversion of Rs.11,000 crores of working capital into long-term loans, issue of non-convertible debentures of Rs.7400 crores, guaranteed by the Government. The balance of the working capital would be in the form of a Cash Credit Arrangement with the Banks. This, coupled with equity infuision by Government, is to assit the airline in regaining its cash flow by postponement of debt repayment.
(a) whether it is a fact that GoM has cleared Rs.21,000 Crore debt restructuring plan for Air India;
(b) if so, the details thereof; and
(c) the reasons therefor?
ANSWER
The Minister of Civil Aviation (Shri Ajit Singh)
(a),(b) and (c): The GoM in the meetings held on 28.10.2011 and 07.02.2012, accepted the recommendations of the a Group of Officers constitued by GoM to vet the Financial Restructuring Plan/Turn Around Plan (FRP/TAP) of Air India which included the conversion of Rs.11,000 crores of working capital into long-term loans, issue of non-convertible debentures of Rs.7400 crores, guaranteed by the Government. The balance of the working capital would be in the form of a Cash Credit Arrangement with the Banks. This, coupled with equity infuision by Government, is to assit the airline in regaining its cash flow by postponement of debt repayment.
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