New Delhi: The management of Air India has requested the new government to release the next cash infusion due to it under a Rs. 30,000 crore rescue plan.

The plan, approved in 2012, involves helping the state-owned airline cut its high-cost debt and turn around its operations.

NEW DELHI: Cash-strapped Air India will seek an additional Rs 1,600 crore as equity in 2014-15, asking for Rs 7,100 crore instead of Rs 5,500 crore as per the original financial restructuring plan (FRP) approved by UPA.

The additional funds in the coming Budget are being sought on three grounds — shortfall of Rs 500 crore in the government's equity infusion last fiscal, interest cost incurred by the airline to raise this amount as loan from banks and finally the fluctuation in $-re exchange rate last year from the assumed value of Rs 40-45 when the FRP was approved.

State-owned Air India is likely to seek permission from the new government of Prime Minister Narendra Modi to raise Rs 10,000 crore through an issue of tax-free bonds in the current financial year.

The airline is additionally seeking immediate cash infusion of Rs 3,000 crore to repay loans it had taken last year to clear dues to vendors, in the event of a shortfall in the equity infusion earlier promised by the government.

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