The Indian government is in talks with India’s Central Bank on providing relief to the cash-strapped national carrier Air India, Civil Aviation Minister Vayalar Ravi told Reuters. “The discussions with RBI (Reserve Bank of India) are on. The discussions are on about Air India’s balance sheet, financial position and future projects,” Ravi said, adding that he was yet to get a response from the central bank on the issue.
Earlier on Thursday, sources told the news agency that India’s central bank had approved extension of the tenure of loans to troubled state-run carrier Air India to 15 years from 10 years. Ravi also ruled out government intervention for the beleaguered Kingfisher Airlines and said the carrier would have to talk to its lenders and find a way out of its financial deadlock.
“They have to talk to the banks and put their own money. It is for them to decide,” he said.