Ministers to meet on equity infusion into Air India on Feb 3

NEW DELHI: The issue of equity infusion into Air India and a review of its turnaround plans are expected to come up for a discussion by a Group of Ministers headed by Finance Minister Pranab Mukherjee tomorrow.

Sources said, the GoM would examine the implementation of various measures taken by Air India to reduce costs and generate revenues.

The government had earlier decided to grant the ailing carrier Rs 800 crore this fiscal, while another Rs 1,200 crore was planned for release in 2010-11. This plan would also come up for review at the crucial meeting tomorrow, they said.

Besides Mukherjee, the GoM includes Home, Law and Civil Aviation ministers, respectively.

The meeting is also crucial as the Parliamentary Standing Committee on Transport, Tourism and Culture had recommended that the National Aviation Company of India Limited (NACIL) be converted into a holding company of NACIL-A and NACIL-I as separate functional units for global and domestic airlines.

The parliamentary committee also criticised Air India management's proposal to cut the pay package of the national carrier's 30,000 employees in a bid to reduce costs and its fleet acquisition plans.

The committee had sought payment of all arrears with effect from January 1997.