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‘Plan part of restructuring effort’
The Ministry of Civil Aviation has proposed greater autonomy for Air India’s management, as part of its strategic turnaround plan for the cash-strapped national carrier, sources said.
Cash infusion
The plan is part of efforts to bring about organisational and financial restructuring at Air India and seek a cash infusion of nearly Rs. 10,000 crore, a senior official of the Ministry of Civil Aviation said. “We have sought more autonomy for Air India’s Board so that they don’t have to come to the government for approvals. This is only a proposal and nothing has been finalised yet,” the official said.
Another Ministry official said that a total of Rs. 1,630 crore equity had been released and Rs. 3,000 crore of government-guaranteed loans had been approved since the disinvestment process for Air India was put on hold. A supplementary provision of Rs. 980 crore was approved for the airline in August. An amount of Rs. 650 crore had also been set aside for the airline during the Budget announcement.
Source : https://www.thehindu.com/todays-paper/tp-business/ministry-moots-greater-autonomy-for-ai-board/article24897762.ece
