Air India restructuring plan approved

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The Union Cabinet on Thursday approved the turnaround and restructuring plans of Air India.

Civil Aviation Minister Ajit Singh informed the mediapersons about it after meeting with the Cabinet Committee on Economic Affairs (CCEA).

The CCEA has approved the turnaround plan (TAP) and the airline’s financial restructuring plan (FRP) that includes additional equity infusion by the government.

The government had earlier announced infusion of Rs 4,000 crore during the current fiscal raising the airlines’ equity base to Rs 7,345 crore.

The SBI-led consortium of 19 banks had last month approved the FRP which includes debt restructuring of Rs 18,000 crore by the banks and a committed equity infusion by the government.