Air India will have to wait till the next government takes over to get approval for its proposal to infuse equity of over Rs 1,230 crore (Rs 12.30 billion) and a soft loan needed of Rs 2,750 crore (Rs 27.50 billion) for its expansion plans.
With the vote-on-account of the UPA government already approved by Parliament, the national carrier would have to wait for the next government to present a budget for eight months till March 2010 for its proposal to get approved, official sources said.
They added that the proposal was currently being vetted by the civil aviation ministry, which was also taking 'preparatory steps' in this regard.
As per the proposal, Air India is seeking over Rs 1,230 crore as fresh equity and a soft loan of Rs 2,750 crore primarily to cater to fleet induction. The airline is in the process of getting deliveries out of the 111-aircraft order from Boeing and Airbus Industrie.
The sources said as the VoA for a period of four months had already been adopted, this proposal would have to await the presentation and adoption of a full-fledged budget in Parliament by the new government after the upcoming general elections.
Asked about the financial health of the airline, the sources, however, maintained that there was "nothing worrisome" and the airline, though hit by the slowdown in demand, was doing well.