Equity infusion into Air India to be discussed soon

September 16th, 2009 NEW DELHI - Union Civil Aviation Minister Praful Patel said here on Wednesday that a revival plan for national carrier Air India is on track and his ministry will soon approach the Union Cabinet for approving infusion of equity. Speaking to newsmen, on the sidelines of the symposium on cooperation between India and Asia in the aviation sector, Patel said the revival plan is in the process of being finalised.

August 20th, 2009 MUMBAI - Cash-strapped national carrier Air India Thursday decided to cut performance-linked incentives of its employees by 30 to 50 percent. The decision was taken at a meeting between the management and employees union leaders and the workers have accepted the cut, an airline official said.

August 14th, 2009 NEW DELHI - The civil aviation ministry has sought the cabinet's nod for Air India to float tax-free bonds worth Rs.5,000 crore ($1 billion) and fresh equity from the government to fund its fleet expansion plans and other expenses. The ministry said the bonds were necessary for the ailing state-run carrier, struggling to stay afloat after having accumulated losses worth $2 billion, to meet its expenses during the ongoing five year plan that ends 2011-12, officials said.

July 29th, 2009 NEW DELHI - Union Civil Aviation Minister Praful Patel said on Wednesday airlines operating from India should follow the law of the land while frisking passengers in airports. Referring to the recent controversy over the frisking of Former President A.P.J.

July 29th, 2009 NEW DELHI - Airlines should follow the law of the land while frisking passengers in India, Civil Aviation Minister Praful Patel said Wednesday. Referring to the recent controversy over former president A.P.J.

July 21st, 2009 NEW DELHI - Civil Aviation Minister Praful Patel said here Tuesday that he would meet Prime Minister Manmohan Singh this week to discuss the appointment of independent directors to the board of Air India in a bid to revive the ailing national carrier. "I will be discussing names of eminent people who can give time and make a turnaround of Air India with the Prime Minister Manmohan Singh this week," Patel told reporters.

July 7th, 2009 NEW DELHI - Cash-strapped national carrier Air India is expected to register a loss of Rs.5,000 crore last fiscal, Civil Aviation Minister Praful Patel told parliament Tuesday. "Nacil (National Aviation Co of India Ltd, that operates Air India) is expected to register a loss of approximately Rs.5,000 crore in 2008-09, largely due to high operating expenses, which have been compounded due to the present economic recession resulting in a drop in passengers," the minister said in a reply in Rajya Sabha.

July 7th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Tuesday said the national budget was not the document to spell out micro policy details and the United Progressive Alliance (UPA) government remained committed to divestment in state-run firms without diluting their public sector character. "I have made it very clear that we intend to include the public in disinvestment programmes," Mukherjee told an interactive meeting with India Inc, a day after presenting the national budget for the current fiscal.

July 6th, 2009 NEW DELHI - The government will raise Rs.1,120 crore (Rs.11.2 billion/$224 million) this fiscal from sale of government equity in state-owned units, according to the budget papers Finance Minister Pranab Mukherjee presented in parliament Monday. In 2009-10, "disinvestment proceeds have been estimated at Rs.1,120 crore which includes disinvestment of a small portion of equity in Rail India Technical and Economic Services (RITES), Cochin Ship Yard Ltd, Telecommunications Consultants India Ltd, Manganese Ore India Ltd, Rashtriya Ispat Nigam Ltd, and Satluj Jal Vidyut Nigam Ltd," the Receipts Budget 2009-10 said.

July 6th, 2009 NEW DELHI - Finance Minister Pranab Mukherjee Monday revived the government's divestment programme, promising equity of state-run enterprises in the hands of general public. He also said that in areas like banking and insurance, specifically, the majority control in state-run companies would remain in the hands of the government with fresh infusion of equity to help them remain globally competitive.

June 8th, 2009 NEW DELHI - The government's decision to infuse fresh capital in public-sector banks (PSBs) will ease the rating pressure that they face because of the quality of loans, says the economic intelligence arm of global rating agency Moody's. "Asset quality at PSBs (public-sector banks) is bound to deteriorate over the short-to-medium term, while the level of restructured loans is also expected to increase significantly, therefore elevating their credit risk profile," said Nondas Nicolaides, vice president and senior analyst at Moody's.com in a statement Monday.

June 1st, 2009 NEW DELHI - Union Civil Aviation minister Praful Patel said on Monday that in the near future, the government might come up with an initial public offering (IPO) of the national carrier, Air India. Patel was addressing reporters at Rajiv Gandhi Bhawan here soon after taking over his second tenure.

May 24th, 2009 NEW DELHI - The board of Reliance Infrastructure, promoted by the Anil Ambani group, Sunday approved issuing up to 43 million preferential shares to its founders and other investors to raise about Rs.4,300 crore ($913 million). In a statement, the company said the equity capital would enhance its net worth to over Rs.16,000 crore and augment its borrowing capabilities to Rs.32,000 crore at a debt-equity ratio of 2:1.

February 27th, 2009 NEW DELHI - National Aviation Co of India Ltd (NACIL), the parent company of national carrier Air India, has sought an equity induction of Rs.1,231 crore (Rs.12.31 billion/$245 million), along with a soft loan of Rs.2,750 crore (Rs.27.5 billion) from the government, Civil Aviation Minister Praful Patel told parliament Thursday. 'The airline industry globally, including the Indian airline industry, is passing through one of the most critical periods in its history,' Patel said.

February 8th, 2009 KOLKATA - Private equity firm India Equity Partners is in talks with cash-strapped business houses to buy out some of their smaller group companies, a top company official said here Monday. Co-founder and managing director Gaurav Mathur said several business, which are finding it increasingly difficult to raise funds for core operations, are now willing to sell off majority stake in some group companies.