Shares the Knowledge !


Turn Around Plan (TAP) and Financial Restructuring Plan (FRP) for Air India




The Cabinet Committee on Economic Affairs approved the Turn Around Plan (TAP) and Financial Restructuring Plan (FRP) for Air India. The Minister informed in a Press Conference that the Cabinet Committee on Economic Affairs (CCEA) has taken up the issues relating to TAP and FRP of Air India and decided to approve them.

The approval of the TAP and FRP by the CCEA would help Air India in getting 

  • upfront equity support of Rs.6,750 Crore, 
  • GOI Guarantee for repayment of Principal amount and payment of Interest on the Non-Convertible Debentures of Rs. 7400 crore proposed to be issued to financial institutions, Banks, LIC, EPFO etc. and used to repay part of Working capital loans
  • equity for Cash deficit support of Rs.4,552 crore till FY 2021, 
  • equity for already guaranteed aircraft loan of Rs.18,929 Crore till FY 2021, 
  • Induction of already contracted for aircraft which include 27 B 787 and 3X B777-300ER on a sale and lease back basis.

The banks have also approved conversion of short-term/working capital loan of Rs. 11,000 crores into long-term loan.

TAP and FRP had been prepared by the management of Air India in consultation with SBI Caps and vetted by an independent consultant M/s Deloitte. The FRP and TAP were also examined by a Group of Officers constituted by the Group of Ministers (GOM) on Civil Aviation. The GOM had recommended the TAP and FRP for approval of CCEA.

The releases of various tranches of equity, however, would be subject to achievement of various laid down milestones that includes Pay Load Factor (PLF), On Time Performance (OTP), Fleet utilisation, Yield Factor, rationalisation of various emolument structure of the employees etc, The Minister added. An Oversight Committee shall be constituted to monitor and ensure that the milestones are achieved before the release of tranches.



Share:

0 comments:

Post a Comment

Upsc - Civils Preparation

Exam Strategy
Tips and Tricks
Preparation and Guidance
Optional Subjects - Preparation
Optional Subjects - Guidance
Many more >>

Bank Exams Preparation

Bank, Currency, Money, RBI,
Budget, Planning, Stock Exchange
Insurance, Taxation, International Organizations
Economic Issues, Fiscal Policy, Committee or Commissions
Many more >>

Computer Knowledge

History, Generations, Terminology
Hardware, Software, Internet
Networks, Shortcut Keys
Many more >>

Interview Preparation

General Do's and Don'ts in Interview
Entry and Dressing up
How to prepare?, Qualities judged
Many more >>