as the process to infuse Rs 1,200 crore as additional equity in Air India takes shape, the airline might ask for another Rs 2,000 crore from the government in the next financial year to repay its massive debt. The airline would require Rs 3,000-Rs 4,000 crore annually to pay off its debt, which is primarily on account of aircraft induction, according to an official estimation. The monthly interest burden on this count averages at Rs 200 crore, while the debt each month stands at about Rs 300 crore.

While the government infused Rs 800 crore in the last financial year, a note for consideration to Cabinet Committee of Economic Affairs (CCEA) is being prepared by Ministry of Civil Aviation (MoCA) for an additional infusion of Rs 1,200 crore. The second tranche of government funds, to be released after CCEA approval, is also likely to be used for settling outstanding dues and not to enhance the airline's equity base.

The airline would also seek cabinet approval to operationalise its six Strategic Business Units (SBUs) when the government considers equity infusion. The SBUs relating to low cost airline, cargo, MRO, grounding handling, engineering and related business would be operationalised as separate profit centres to enhance revenues.