Air India gets finance ministry nod to recast bailout package

The finance ministry has approved a proposal of Air India to recast a govt-approved bailout package, said 2 officials aware of the development. The proposal is aimed at saving the airline almost INR15b every year in interest costs. The airline had in 2012 secured about INR300b in equity infusion spread over 10 years from the govt that allows it, on average, to draw INR30b every year. The govt has been infusing this amount directly into the company, in return receiving shares in the airline. It has infused INR225.65b into the airline so far. The finance ministry has now cleared a proposal that will allow Air India to take a part of the INR30b in the form of a grant, which will be used to reduce the airline’s interest outgo, said one of the officials cited above. “This will be a huge relief,” the official said. <br/>