GoM approves Air India debt recast

Zeebiz Bureau Mumbai: India's airlines will be allowed to import jet fuel directly, Aviation Minister Ajit Singh said on Tuesday. The GoM, headed by Finance Minister Pranab Mukherjee, was also apprised of the decision to allow foreign airlines pick up 49 percent stake in Indian carriers. On ATF imports, Singh said airline "companies will be allowed to import fuel directly for their use. This also has to go to the Cabinet. GoM has approved this. We will try to see whether some kind of credit arrangement can be made." The meeting was also attended by Home Minister P Chidambaram, Petroleum Minister S Jaipal Reddy, Commerce Minister Anand Sharma and Planning Commission Deputy Chairman Montek Singh Ahluwalia, apart from top officials. A panel of ministers has also approved a debt restructuring plan for state-run carrier Air India, he said. The aviation minister also added that the cabinet would take a final view soon. Group of Ministers have decided to allow airlines to directly import jet fuel to enable them save on high incidence of tax and permit Air India to raise Rs 7,400 crore by issuing bonds or other means. With  MY  INPUTS.           BY:....GAUTAM KUMAR GUPTA (PGDM 2ND SEM)