For 2013-14, the airline was allocated Rs 5,000 crore (Rs 50 billion) of equity infusion, against the demand of Rs 8,574 crore (Rs 85.74 billion), sources told Business Standard.
This would hit the timely payment of dues to vendors, as well as the carrier’s revival.
Last year the Cabinet had approved a turnaround plan for Air India and sanctioned equity infusion of Rs 30,000 crore (Rs 300 billion) over a period of eight years.
The government had also agreed to give a guarantee for the airline’s debt restructuring plan.
This financial year, Air India had expected infusion of Rs 11,014 crore (Rs 110.14 billion).
However, it received only Rs 6,000 crore (Rs 60 billion).
For 2013-14, it had sought Rs 3,564 crore (Rs 35.64 billion) in addition to the Rs 5,000 crore (Rs 50 billion) it hadn’t received this financial year.
Air India’s total debt stands at about Rs 43,000 crore (Rs 430 billion).
It also has dues worth hundreds of crores to oil companies, airports and vendors. Last December, the government had said Air India owed Rs 4,064 crore (Rs 40.64 billion) to oil companies.
It owes about Rs 1,300 crore (Rs 13 billion) to airport operators,
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