Maharaja with borrowed clothes

The Air India bailout decision by the government comes as a major disappointment. In addition to the bailout package of R30,000 crore over 9 years, the consortium of banks has been asked to convert R11,000 crore of short-term working capital loans into long-term debt to save the beleaguered airline R1,000 crore in interest. Air India has also been allowed to issue non-convertible debentures of R7,400 crore, which, too, may have to be subscribed by the government-owned financial institutions.

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