Budget 2016: Air India to get Rs 1,713 crore against demand of Rs 4,300 crore

NEW DELHI: The government has announced to allocate Rs 1,713 crore for Air India to be infused as equity during the 2016-17 fiscal.

According to the Budget papers, the national carriers plan outlay for the fiscal has been pegged at Rs 2,065 crore.

This infusion is much lower than Air India expectations of Rs 4,300 crore for the fiscal. Of the total amount, the carrier had sought about Rs 3,300 crore from the government under the Turnaround Plan and backlog amount of around Rs 977 crore, which is mainly on account of steep appreciation in dollar against the rupee.

Air India, which is saddled with debt of around Rs 40,000 crore and losses of over Rs 20,000 crore, is estimated to return to operational profit by the end of this fiscal.