(ET)
The government is considering yet another giant rescue package to make state-owned Air India commercially viable following the failure of its disinvestment plan earlier this year. This will include a Rs 30,000 crore loan write-off and a cash infusion of Rs 10,000-11,000 crore, said people with knowledge of the matter.
Accumulated losses will also be written off as part of the package that’s being considered by the finance ministry, allowing the company to clean up its balance sheet, said the people cited above. “Small cash infusions are not making any dent. We want to put the airline in a commercially viable situation,” said one of the officials cited above. Sources in the aviation ministry said that a decision to work on another bailout for Air India was taken at a meeting in the Prime Minister’s Office with an intent to improve the financial and operational situation of the national carrier.
