Decision soon on additional equity infusion in Air India

NEW DELHI: A decision on additional equity infusion in Air India is likely soon with the Civil Aviation Ministry moving a Cabinet note on the matter, even as the ailing carrier planned to conclude a debt recast package with its bankers by mid-March next year.

Confirming the circulation of the note, official sources said the Union Cabinet may take up the issue within the first fortnight of 2012.

Speaking on the national carrier's debt recast plans, they said the bankers have sought an extension of the provisioning norms over a five-year period.

Maintaining that the lenders have requested for extending provisioning norms so that the provision could be spread over extended financial years, Air India officials said the issue "has already been taken up with Reserve Bank of India and the reply is awaited".

The officials also maintained that Air India had the "full support" of its lenders to conclude this arrangement within 120 days of the RBI approval, that is before the middle of March next year.

The airline officials said the Finance Ministry has not rejected the debt recast plans, contrary to reports.