Air India likely to receive 120 million rupee equity, says Praful Patel

Wednesday, October 20, 2010

NEW DELHI - Civil Aviation Minister Praful Patel said on Tuesday that the national carrier Air India is likely to receive government approval for rupees 120 million equity infusion by month-end.

The Cabinet note concerning the proposal is already moved for circulation, and is likely to be cleared by next month.

Praful Patel said that the entire planning for fund for the Navi Mumbai airport is between SBI and Air India.

He also said that the Civil Aviation Ministry and the Reserve Bank of India would together give the lead for healthy growth of air traffic.

“Yes, looking at the overall interest and the health of the aviation industry, the government has taken decisions from time to time. The RBI has also taken decisions from time to time. So, I think the combination of the two will lead to a healthy growth of the air traffic, and strong demand is an indicator that most airlines are doing reasonably well and some are doing even better,” said Patel.

The new airport, to be built over 2,000 hectares, has been planned near Panvel, about 30 kilometres away from Mumbai’s Chhatrapati Shivaji International Airport.

Sources in the Environment Ministry had pointed out that the project would destroy 400 acres of forests, which protect the coastline, and serve as hatching grounds for fish. The plan involved the diversion of two rivers

The Environment Ministry has been considering alternate proposals and a clearance is expected by November this year. (ANI)

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