Extending a helping hand to Air India, the government today asked the Finance Ministry to critically examine the "extent of
assistance" to be given to the national carrier and the Petroleum Ministry to extend the credit limit initially for three months.
This was decided at a meeting of the high-level committee, headed by Cabinet Secretary K M Chandrasekhar, set up to monitor Air India's cost cutting measures. The Committee met for the first time today and vetted the cash-strapped carrier's plans to cut costs and generate revenue.
Official sources said Air India's parent company, National Aviation Company of India Limited (NACIL) has been asked to appoint a Cost Auditor to monitor costs.
The auditor would ensure that cost reduction measures and operational efficiencies are implemented on a day-to-day basis, sources said.
The national carrier is estimated to suffer a loss of Rs 7,200 crore in the last financial year.
