The Government of India’s efforts to sell off cash-strapped Air India has not seen any success so far. Air India has been eating massive amounts of tax-payers’ money and even then running into losses. Air India has even been failing to meet its working capital requirement and looking for loans to fix the problem.
Two days ago, Air India got a Rs 1000 crore loan from the National Small Savings Fund. It also received Rs 980 crore towards equity infusion by way of a supplementary grant from the Union government. The possibility of getting these amounts back is negligible indeed. So, keeping Air India in mind, what is happening in tiny Cyprus, really puts things in perspective about what is possible.
Notably, Air India further hopes to mop up Rs 500 crore through short-term borrowings next week. These are, however, stop-gap arrangements with no permanent cure of ailing airline in sight. Read More