The State Bank of India seems to help the troubled Kingfisher Airlines
to overcome the cash crisis as various media reports said that the bank
will extend a relief extend a relief package.
However, the Bank refused to confirm the reports. The report suggested that the SBI has decided to extend Rs 1650 crore relief package to the Kingfisher Airlines.
In order to help the crisis-hit Kingfisher Airlines, the bank decided to extend a new line of credit, which included 7 billion rupees in short-term working capital and 5 billion rupees in bank guarantees.
However, the government said that there is no plan to give a bailout to the private airline. Civil Aviation Minister Ajit Singh said that the government will not do the same for the Kingfisher airlines what are being done for Air India.
On the other hand, reports said that the Income Tax (I-T) department may defreeze the bank accounts of the airline after Kingfisher agreed to pay its dues partially.
The airlines has been asked to pay as much as Rs 53.8 crore for financial year 2011 and Rs 100 crore for financial year 2012 to the I-T department.
However, Kingfisher has paid Rs 21 crore till December 2011 and will pay Rs 130 crore TDS liability by FY 2012 end. It has been asked to pay Rs 43 crore service tax dues by March 2012.
The airline has cancelled 14 flights in Mumbai and four in Delhi on Wednesday. However, the operations in Kolkata resumed after the Directorate General of Civil Aviation (DGCA) asked the private carrier not to shut down the operation in the city.
However, the Bank refused to confirm the reports. The report suggested that the SBI has decided to extend Rs 1650 crore relief package to the Kingfisher Airlines.
In order to help the crisis-hit Kingfisher Airlines, the bank decided to extend a new line of credit, which included 7 billion rupees in short-term working capital and 5 billion rupees in bank guarantees.
However, the government said that there is no plan to give a bailout to the private airline. Civil Aviation Minister Ajit Singh said that the government will not do the same for the Kingfisher airlines what are being done for Air India.
On the other hand, reports said that the Income Tax (I-T) department may defreeze the bank accounts of the airline after Kingfisher agreed to pay its dues partially.
The airlines has been asked to pay as much as Rs 53.8 crore for financial year 2011 and Rs 100 crore for financial year 2012 to the I-T department.
However, Kingfisher has paid Rs 21 crore till December 2011 and will pay Rs 130 crore TDS liability by FY 2012 end. It has been asked to pay Rs 43 crore service tax dues by March 2012.
The airline has cancelled 14 flights in Mumbai and four in Delhi on Wednesday. However, the operations in Kolkata resumed after the Directorate General of Civil Aviation (DGCA) asked the private carrier not to shut down the operation in the city.
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