The government will infuse about Rs. 30,000 crore in cash-strapped Air India over the next nine years as part of a turn around plan for the state-run airline, Parliament was informed on Thursday.

To a question on whether the government has decided to infuse Rs. 30,000 crore into Air India till 2020, Civil Aviation Minister Ajit Singh in a written reply to the Rajya Sabha said: “Yes, Sir.”

He said that in order to improve its operating and financial performance, Air India has already taken various steps. These include rationalisation and elimination of certain routes, phasing out old fleet, freezing of employment in non-operational areas and dismantling of the Frankfurt hub.

Mr. Singh added that the Turn Around Plan (TAP) approved by the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on April 12 envisaged a business model that included independent ground handling and MRO (Maintenance, repair and operations) from the main airline business.

Responding to another query in the upper house, Mr. Singh said under the financial package, Air India would get an upfront equity infusion of Rs. 6,750 crore, equity for cash deficit support of Rs. 4,552 crore, and equity for already guaranteed aircraft loan of Rs 18,929 crore till financial year 2021.

Besides, the airline has been allowed to issue government-guaranteed non-convertible debentures (NCDs) worth Rs 7,400 crore to its lenders, like financial institutions, banks, LIC and EPFO.

The government also gave its nod to the induction of 27 Boeing 787 Dreamliners and three Boeing 777-300s on sale and leaseback basis, he said.

Responding to another query, Mr. Singh said the outstanding salary for March 2012 is Rs. 123.54 crore.

The debt-ridden carrier has outstanding loans and dues worth Rs. 67,520 crore, of which Rs. 21,200 crore is working capital loan, Rs. 22,000 crore long-term loan on fleet acquisition, Rs. 4,600 crore vendor dues besides an accumulated loss of Rs. 20,320 crore.

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