New Delhi: Crisis-hit SpiceJet may get the first round of its much-needed fund infusion in the next two days, while more may come in a month's time as part of an estimated USD 200 million investment plan, sources said. As per a capital infusion plan received by the Civil Aviation Ministry, the initial funds from an overall corpus of about USD 200 million may come in by January 10, sources said. "In about a month, more funds would come in," they added.
Another official said that the Ministry has received a proposal and the government is hopeful about the carrier's turnaround. The airline, which is now operating about 200 flights a day, is also believed to have renewed its bank guarantee to Airports Authority of India (AAI).
Sources said that the indications are positive so far and the government does not want one more airline to shut down asthat would send wrong signals to the economy and the sector in particular.The investors may be called in for a meeting early next week to the Ministry. When contacted, a SpiceJet spokesperson refused to comment on any speculation. Shares of SpiceJet rose 2.8 per cent on the BSE.
The cash-strapped budget carrier had presented a revival plan to the Civil Aviation Ministry late last month, but it was told to submit a revised comprehensive plan with more details. SpiceJet's founding promoter Ajay Singh has also come to the rescue of the crisis-ridden airline, with Singh and a US-based investment fund planning to invest in the carrier. The potential investors are likely to buy stake from current promoter Kalanithi Maran by infusing USD 200 million to help the airline to stay afloat.
With the airline grounded for almost one full-day last December due to the oil companies' refusal to supply it jet fuel without cash, Civil Aviation Ministry had come to its rescue with requests to oil marketing firms and the AAI to extend the credit line to the airline for two weeks till December 31, 2014. The credit facility by the AAI was later further extended by two weeks on January 1.
