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New Delhi: India's aviation ministry has agreed to allow Air India's lenders to be part of a monitoring board that will oversee execution of the state-run carrier's turnaround plan over the next few years.
Air India's debt recast plan was given an in-principle approval by banking regulator Reserve Bank of India (RBI) in November, after which it had asked a consortium of lending banks, led by SBI Capital Markets Ltd, to hold talks with the carrier and the aviation ministry and submit a final report.
One of the conditions sought by the banks from the aviation ministry, when both sides met last month, included having an oversight on the airline's turnaround implementation.
The new monitoring board is expected to be established after the cabinet clears the turnaround plan. It will be headed by top bureaucrats from various ministries, including finance.
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