The benefits for Air India from the financial restructuring plan have been largely eroded by high volume of short-term loans and the state-owned airline should look at rationalising costs, the CAG said today.
Besides, the apex auditor has recommended that the government’s equity funding to the airline should be adjusted after taking into account the reduction in loan amounts and lower interest liability on non-convertible debentures.
Under the Financial Restructuring Plan (FRP) approved in April 2012, the government had committed to infuse equity of Rs 42,182 crore from 2011-12 to 2031-32.
In its report tabled in the Parliament, the Comptroller & Audit General (CAG) said there has been ero…
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