Packing batteries with more punch
Indian researchers are working on cells that can store more energy, last longer
Mr Ajit Singh
The State Bank of India-led consortium of banks is likely to give its nod for the Financial Restructuring Plan of Air India later tonight. The FRP implementation, which will start after the Union Cabinet approves additional equity infusion into the airline, will result in Air India saving about Rs 1,000 crore in the first year itself.
Sources told Business Line that at least four agreements as part of FRP will be signed here later tonight. The four agreements likely to be signed include the master re-structuring agreement, working capital facility agreement, appointment of facility agents and appointment of trustee.
The main highlights of the agreement include converting about Rs 10,500 crore of the airlines working capital in to long-term loan. This will carry an interest of 11 per cent annually. “The first year interest will accumulate in a funded interest term plan,” sources said.
In addition, Rs 7,400 crore is to be issued as Non-Convertible Debentures and subscribed by investors. The NCD shall also be guaranteed by the Government. The NCD proceeds will be used to repay lenders. Besides, part of the working capital for about Rs 3,500 crore will be restructured as cash credit arrangement. A consortium of 22 banks, including SBI, Bank of Baroda and Bank of India, have provided working capital loan to Air India. “Officials from at least 15 banks are present at the signing ceremony,” sources said.
The Financial Restructuring Plan proposes that the Government will infuse equity of Rs 30,231 crore during financial year 2012-21, the Minister for Civil Aviation, Mr Ajit Singh, had told the Lok Sabha on March 14 this year.
The Minister informed the House that until Air India restructures its working capital loans, banks are not sanctioning fresh working capital loans. The Government had provided equity infusion of Rs 800 crore in 2009-10, Rs 1,200 crore in 2010-11 and another Rs 1,200 crore in 2011-12, Mr Singh said.
Indian researchers are working on cells that can store more energy, last longer
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