On Monday, after the meeting, the UPA government has planned to infuse Rs 30,000 crore for the national carrier over a period of ten years.
The government is considering writing off Rs 4,500 crore cash loss of Air India and infuse an additional equity of Rs 6,750 crore and Rs 17,000-18,000 crore for its fleet acquisition programme.
Sources claimed that the Civil Aviation Ministry, Air India and representatives of lenders - a consortium of 14 banks led by the State Bank of India declared the bailout package after the two-hour meeting.
Last week, the lenders received a green signal from the Reserve Bank of India, after it gave a broad approval to the debt restructuring plan of the cash-strapped carrier, sources said.
The Civil Aviation Ministry will prepare the bailout package within few days.
According to the latest figures, Air India's aircraft loans and working capital loans have incurred a total debt of Rs 43,777.01 crore, while the working capital loan is Rs 21,511.10 crore and aircraft loan is Rs 21,412.06 crore.