Government is contemplating capital infusion by way of equity and soft loans for the cash-strapped Air India which has deferred the future aircraft delivery in the backdrop of mounting losses of Rs 7,200 crore.

“An equity infusion and soft loan by the Government as a measure of softening the adverse financial situation (of Air India) is contemplated,” Civil Aviation Minister Praful Patel said in Rajya Sabha.

Responding to a Calling Attention Motion on Air India, he said the airlines has adopted various measures to improve its financial position.

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