The government may put Air India under the supervision of the board for reconstruction of public enterprises, or BRPSE, as it finds the ailing national carrier's efforts to restructure its finances "illusionary" as per a report in the Economic Times. The airline is seeking a 2,000 crore bailout package for financial year 2011-12, after getting a cash infusion of 1,200 crore in December.
" Financial restructuring has been found illusionary so far and the company has not been able to turn around," a senior government official said. "We are planning to take up this issue at the appropriate level. Otherwise there is no use of bodies such as BRPSE," he said, requesting anonymity. BRPSE undertakes strengthening, modernising, reviving, and restructuring of public sector enterprises and advise the government on strategies, measures and schemes related to them.
The board can suo motu consider the case of loss-making public enterprises even if it is not referred by the administrative ministry, civil aviation ministry in this case. Air India reported a net loss of 5,551 crore in 2009-10, as against 7,189 crore losses in 2008-09. The airline has accumulated debt of around 15,000 crore. The revival package for Air India, the details of which are being worked out, will be sent to BRPSE, heavy Industry minister Vilasrao Deshmukh had said earlier.
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