\nThe additional funds in the coming Budget are being sought on three grounds \u2014 shortfall of Rs 500 crore in the government\u2019s equity infusion last fiscal, interest cost incurred by the airline to raise this amount as loan from banks and finally the fluctuation in $-re exchange rate last year from the assumed value of Rs 40-45 when the FRP was approved.
\n\u201cAI was to get Rs 6,000 crore this fiscal. The interim Budget presented by outgoing UPA-II made a provision for Rs 5,500 crore. So, the airline will be seeking the Rs 500 crore shortfall of last fiscal and Rs 1,100 crore for meeting interest cost (incurred for meeting this shortfall) and the wild exchange rate fluctuation,\u201d said an official.
\nPrime Minister Narendra Modi will shortly be given a presentation on the civil aviation sector, with focus on AI.
\n\u201cAI is at a crucial juncture with the airline set to join Star Alliance in a month. We are confident that the airline is seeing light at the end of the dark tunnel,\u201d said the official.
\nModi\u2019s experience in turning around crisis-ridden Gujarat Narmada Valley Chemicals and Fertilizers Ltd (GNFC) is being cited as the role model for reviving AI.
\n\u201cThe PM is known to be keen on a strong and vibrant public sector. This gives us tremendous hope for AI,\u201d said another official.
\nWhile AI\u2019s demand for Budget has been firmed up, the aviation ministry has called a meeting of all stakeholders like airport operators and airlines this week to firm up the industry\u2019s requirements in the Budget.
\nThis wish list will be headed by the demand for putting aviation turbine fuel (ATF) or jet fuel in declared goods status so that it attracts a uniform 4% sales tax at airports across India.
\nHigh jet fuel prices have single-handedly driven all Indian carriers (except IndiGo) deep into the red.
\n\u201cWe will seek open access for supplying ATF at airports, which will allow airlines to directly import jet fuel using the infrastructure of oil PSUs, which in turn can get carriage charges.
\nATF charges for domestic flights are among the highest in the world in India,\u201d said an official.
\nMeanwhile, the ministry is firming up its 100-day plan that includes \u2018do-able\u2019 items like taking steps to improve regional connectivity, developing cargo facilities and promoting maintenance, repair and overhaul facilities for aircraft in India.
\nPrime Minister Narendra Modi has cautioned ministries against large scale transfers of officials, asking them to shun the temptation of shunting around officials appointed by the previous government.
\nIn the recent meeting with secretaries, the PM reportedly told the top babus that \u201ctransferring people who don\u2019t perform is like transferring a problem elsewhere. Let them remain there and ensure they deliver.\u201d
\nModi exhorted the secretaries to strengthen systems. He reportedly said: \u201cI don\u2019t believe in developing individuals. I believe in developing institutions so that the institutions can keep performing after the individuals go.\u201d
\nThe outgoing UPA-II had given posting with fix tenures to some of its choicest officers in its last days. Modi\u2019s stern message to secretaries in last week\u2019s meeting was a signal to avoid large scale transfers and ensure continuity.<\/p>\n","protected":false},"excerpt":{"rendered":"