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Cabinet committee denies second equity infusion for Air India

28-Oct-2010 10:59 AM

India’s Cabinet Committee On Economic Affairs (CCEA) reportedly denied a second equity infusion of INR1,200 crore (USD270 million) for Air India on the grounds that the carrier failed to meet certain targets including revenue generation and cost cuts (Live Mint, 27-Oct-2010). The carrier received an equity infusion of INR800 crore (USD180 million) from the Government in the last fiscal. Air India requires the equity infusion for it’s cash flow as well as to raise more capital that would help it pay back some of its INR18,000 crore (USD4 billion) of debt.