Budget 2015: Government has allocated Rs 2,500 crore for Air India


The government has allocated Rs 2,500 crore fund infusion for state-run carrier Air India for the next fiscal year, an amount less than half of what it put into the airline last year and more than 40 per cent less than what it had asked for. 
A senior executive at the carrier said the move will impact cash flows and debt repayments. But industry experts welcomed the move saying it's about time the government stopped cash handouts to the airline. 
"Air India had asked for Rs 4277 crore as plan outlay for 2015-16 and has been given only Rs 2,500 crore. For the current fiscal year (2014-15), the government put in Rs 720 crore less than what was earlier decided. We thought that would be adjusted in the allocation for 2015-16, but what has happened it quite a different story," said the senior executive quoted above. 
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