Air India accepts turnaround plan

Cash-strapped Air India has accepted the restructuring plan presented by consultancy firm Deloitte and SBI Caps and this would be taken to the government, banks and the Reserve Bank of India (RBI) soon, the airline said on Tuesday.   “We have only approved what we need to take to the banks, the government and the RBI. After all the confabulations, we officially have a turnaround plan. We will soon be making it public,” Air India chairman and managing director Arvind Jadhav said while speaking to reporters at the sidelines of the MRO India 2011 conference in Mumbai.   “We will be calling a meeting of a consortium of bankers soon,” he added.  The restructuring mainly involves debt revamp, sources said. This could be in the form of interest rate reduction and moratorium on repayment. The total debt of the airline is around Rs 40,000 crore. It already has a debt of around Rs 18,000 crore in working capital loans taken from banks. There's also a proposal to convert working capital loans into long-term term loans at lower interest rates.