(FE)
The finance ministry will be releasing Rs 980 crore to cash-strapped Air India as part of the supplementary grant sought by the civil aviation ministry, an official told FE. This grant, which will help the airline in clearing some of its loan repayments due to banks and vendors, is likely to be released next week, the official added.
Reportedly, the carrier is separately raising a short-term loan of Rs 1,500 crore from Bank of Baroda. The state-run airline owes around Rs 1,800 crore to its vendors which includes lessors and banks. In the FY19 Budget, the government had set aside a grant of Rs 650 crore for the carrier. A supplementary grant is made when the initial grant approved by Parliament falls short. The additional grant needs to be presented and passed by Parliament.
The demand for an additional grant was presented before Parliament during the recently concluded Monsoon session. While it was approved by the Lok Sabha, the Rajya Sabha could not take it up. Since it is a money Bill, the Rajya Sabha’s assent is not a must but the grant can only be made 14 days after the conclusion of the session; this period ends on August 24.
