Equity infusion in AI 'neither timely, nor adequate': Ajit

New Delhi: Government today acknowledged that equity infusion in Air India has neither been adequate nor timely and the cash-strapped airline would suffer additional interest burden as a consequence.
In the past three years, government has infused a total of Rs 12,200 crore into the national carrier but "there has been a shortfall in equity infusion to the tune of Rs 3,574 crore, leading to a liquidity crunch", Civil Aviation Minister Ajit Singh said.
"Equity infusion by the government has neither been timely, nor adequate. To meet its working capital requirements with the support of government guarantee, Air India has had to seek short-term working capital loans from the banks. This would result in additional interest burden to the company," Singh told the Parliamentary Consultative Committee at a meeting in Panaji.
Read News In full 02/12/13 PTI/Business Standard