ANNOUNCEMENT 12 Apr 2012In April 2012, the government of India announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On 12 April 2012, the Cabinet Committee on Economic Affairs of the Government of India approved the Turn Around Plan and the Financial Restructuring Plan for the national carrier, Air India. The plans help Air India in getting:
(i) upfront equity support of Rs.6,750 Crore,
(ii) government guarantee for repayment of principal amount and payment of interest on the non-convertible debentures of Rs. 7400 crore proposed to be issued to financial institutions, Banks, LIC, EPFO etc. and used to repay part of working capital loans,
(iii) equity for cash deficit support of Rs.4,552 Crore till FY 2021,
(iv) equity for already guaranteed aircraft loan of Rs.18,929 Crore till FY 2021,
The GTA includes state-financed bailouts of enterprises that face international competitors.