As has recently been confirmed by Civil Aviation Minister Praful Patel, Air India, which is currently struggling with mounting debts and falling revenues and passenger numbers, will be injected with Rs. 800 crore worth of equity by December in its first major Government bailout. Other funds required would be subject to the carrier saving atleast Rs. 2,000 crore by end of March 2010.

"We are looking at equity infusion of Rs 800 crore to Air India in the next two months. That would be initial tranche and as we have said we would be monitoring the monthly progress before we move into the next tranche of giving equity support", said Patel.

In a proposal shared by Patel earlier this year, which was supported by Ministers and opposed by union groups, he had stated that Air India would find Government support worth atleast $50 Billion, if it made the same amount via cost cuts and restructuring.

In a recent meeting, the Government had decided that funds to the ailing carrier would be given as monthly installments instead of in bulks, and once cleared by the cabinet, the 800 crore equity would be the first part of the funds promised.