New Delhi, Aug 30: Cash-strapped Air India is likely to receive about Rs 5,000 crore as equity from the government over the next three years.
The proposal to provide funds to Air India was discussed here on Saturday, Aug 29, at the second meeting of the Committee of Secretaries headed by the Cabinet Secretary, K M Chandrasekhar.
The Committee has asked the Ministry of Civil Aviation to move the proposal in "consultation" with the Ministry of Finance.
"The government would support the airline in meeting its short- and medium-term capital requirements. The CoS has agreed to increase the equity base of the company and take it above Rs 5,000 crore over the next three years," the official said.
He also said the government would help the airline in getting loan from banks if required.
"No time-frame has been fixed for moving the Cabinet note. The quantum of funds to be given as equity as also the amount of working capital will be covered by government guarantee are still to be firmed up," sources said.