The government is likely to provide a guarantee or a comfort letter to National Aviation Company of India (Nacil) that will help the beleaguered public sector airline access funds at 10-10 .5% interest under a debt restructuring programme that is under negotiation as per a report in TOI.
A government official said the finance ministry would discuss the issue of guarantee once there was agreement on the final contours of debt restructuring . In other words, North Block wants to do a proper due diligence before providing the comfort letter as there is a feeling in official circles that the civil aviation ministry often limits itself to sectoral interests.
At the same time, in the big first reality check, the government will now have to decide if deep-in-red Air India should cancel the order for the 27 Boeing 787 Dreamliners worth almost $4 billion.
This view has been taken by a panel set up by AI under aviation ministry's financial adviser and DGCA chief Bharat Bhushan to study the compensation it should get from Boeing for the over three-year delay in the Dreamliner's delivery.
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