A panel of top officials, formed by the UPA government--headed by Mr. K. M. Chandrashekhar, Cabinet Secretary, has urged the government to offer Rs 50 billion to Air India.

The panel has also suggested the national carrier to reduce costs, including cutting its manpower. Air India, a national flag carrier airline of India, would receive the money through equity infusion or soft loans or both, during upcoming 3 years.

According to the senior officials, there are few conditions to it like reducing costs on all fronts and bringing in a voluntary retirement scheme for workers of Air India.

The decision was taken by the panel at a meeting on Saturday and the recommendations will be sent on to a committee of Ministers for the final approval. Mr. S.

Chandrakumar, Air India Deputy General Manager, stated that Air India is operated by National Aviation Co. of India Ltd. (NACIL), which was organized after the merger of Air India and Indian Airlines in the year 2007.

In the beginning, Air India and Indian Airlines had individually provided voluntary-retirement schemes for their workers in 1991.

In the month of June this fiscal, the carrier presented another scheme that provided employees an option to take leave for 2-5 years without salary and allowances.

He didn't provide details on how many workers have preferred that scheme, but told that it has now been covered indefinitely from the earlier deadline of July 31. Air India, which employs more than 31,000 employees, pays more than Rs 30 billion in salaries every year.

Productivity- related incentives contain bulk of its salary costs. In order to receive help from the government, Air India has made a turnaround plan that includes steps to reduce costs and optimize income. Lately, the carrier announced that it would halve incentive payments for its staff as part of the turnaround plan.