GOVERNMENT OF INDIA
Ministry of Civil Aviation
UNSTARRED QUESTION NO. 480
TO BE ANSWERED ON THE NOVEMBER 27, 2012
Committee of Officers for the Revival of Air India
480. SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of CIVIL AVIATION be pleased to State;
(a) whether it is a fact that a Committee of Officers was recently constituted to suggest measures for the revival of Air India;
(b) if so, the details thereof;
(c) whether the Committee has submitted its report;
(d) if so, the major recommendations of the Committee; and
(e) the action that Government has taken or proposes to take on these recommendations?
MINISTER OF STATE IN THE MINISTRY OF CIVIL AVIATION
(SHRI K. C. VENUGOPAL)
(a), (b) and (c): The functioning of Air India was first reviewed at the level of Committee of Secretaries in 2009. It was decided that the Review of Air India would be undertaken at the level of GoM. The GoM thereon met several times to review the performance of Air India and gave specific targets/milestones for infusion of Equity. The GoM in its review meetings held on 28.10.2011 and 07.02.2012, accepted the recommendations of the Group of Officers constituted by GoM to vet the Financial Restructuring Plan/Turn Around Plan (FRP/TAP) of Air India.
(d): FRP and TAP of Air India was considered by the Government on 12.04.2012 and approved as under:-
(i) Induction of upfront equity of Rs. 6, 750 Crore, including Rs. 1, 200 Crore provided in the budget of 2011-12 and already released, in the Financial Year 2011-12.
(ii) Equity for Cash deficit support of Rs. 4, 552 crore from FY 2012-13 to FY 2017-18.
(iii) Equity for already guarantee aircraft loan of Rs. 18, 929 Crore till FY 2021
(iv) GOI Guarantee for repayment of Principal amount and payment of Interest on the Non-Convertible Debentures (NCDs) of Rs.7400 crore proposed to be issued by Air India Limited to the financial institutions, Banks, LIC, EPFO etc.
(e): Government has appointed an Oversight Committee to monitor the implementation of TAP and FRP by Air India. On the recommendations of this Committee, an amount of Rs. 4000 crores has been released towards equity infusion in Air India during current financial year, which were utilized by Air India for payment to Oil Companies, for payment of salary, payment of service tax and to the vendors etc.