NEW DELHI: A panel of secretaries has voted in favour of providing support of Rs 30,000 crore to Air India besides exploring the possibility of disinvesting government stake once the national carrier turns profitable.

The capital infusion plan, spread over 10 years, is expected to face criticism from certain quarters on the grounds that the government will nurse a sick airline only to sell its stake to private players once it is healthy. This will also mark a reversal of the disinvestment policy followed by the UPA which has stayed away from roping in private players even in loss-making public sector companies. It has instead followed a policy of shedding stake and disinvesting through public issue of shares.

The committee of secretaries opted to go with the recapitalization plan after looking at seven other options. According to the plan, the government estimates that Air India will make cash profits by financial year 2018 on equity infusion of Rs 30,231 crore. The revival scheme envisages that the cash-strapped carrier will be barred from inducting new aircraft, except Boeing 787, and, if needed, any additional aircraft should be acquired on lease. Besides, it will come with the stipulation that fresh induction will come only after the profitability of a route is assessed.

The government envisages that AI would be made earnings before interest, taxes, depreciation and amortization (EBITDA) positive in 2013 with upfront equity of Rs 6,750 crore. The plan talks of setting up of an oversight panel to monitor AI with the mandate to ensure it achieves operational efficiency.