<p>   u00a0</p>  <div id="cke_pastebin">   &quot;The turnaround plan of Air India has been approved,&quot; Civil Aviation Minister Ajit Singh told reporters after a meeting of the Cabinet Committee on Economic Affairs (CCEA).u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   The CCEA approved the TAP and the airline&#39;s financial restructuring plan (FRP), which includes additional equity infusion by the government.u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   Besides, the issue of induction of the much-awaited Boeing Dreamliner-787, part of the TAP, was also given the green signal by the CCEA, official sources said.u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   They said the issue of allowing foreign airlines to invest in Indian carriers could be taken up by the Cabinet next week.u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   As part of the airline&#39;s restructuring plans, the government had announced infusion of Rs 4,000 crore during the current fiscal in the 2012-13 Union Budget.u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   This would raise the airlines&#39; equity base to Rs 7,345 crore. US aircraft manufacturer Boeing is expected to deliver the first of the 27 Dreamliners, ordered in 2005, to the national carrier next month.u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   The delivery of these aircraft was initailly to commence from 2009 but the US aircraft-maker deferred it for various reasons, including labour unrest.u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   The SBI-led consortium of 19 banks had last month approved the FRP which includes debt restructuring of Rs 18,000 crore by the banks and a committed equity infusion by the government.</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   The financial restructuring exercise began in May 2010 with SBI-Caps being appointed Financial Advisors to the transaction.u00a0</div>  <div id="cke_pastebin">   The FRP is based on Air India&#39;s overall turnaround plan aimed at providing immediate relief to the airline through provisions such as funded interest term plan, repayment moratorium of long-term loans and upfront equity infusion by the government.u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   The plan, formulated on the basis of projected cash flows of the company, provides a roadmap to improve the airline&#39;s operational efficiency and put it on the road to profitability, the sources said.u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   The high-cost working capital debt of the national carrier stands at Rs 22,000 crore, of which the banks will restructure about Rs 18,000 crore.u00a0</div>  <div id="cke_pastebin">   u00a0</div>  <div id="cke_pastebin">   Of nearly Rs 18,000 crore borrowings, Rs 10,500 crore will be converted into long-term debt with a repayment period of 10-15 years. The remaining Rs 7,400 crore will be repaid to banks through a government-guaranteed bond issue.</div>  

In a big boost to ailing Air India, the government today approved a turnaround plan (TAP) to restructure the operations and the finances of the cash-strapped carrier, including infusion of additional equity. 

Govt approves turnaround plan for Air India

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Govt approves turnaround plan for Air India

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