New Delhi, March 31
In a boost to its precarious financial position, Air India's Financial Restructuring Plan has been approved by a consortium of banks that may enable the ailing carrier save several hundred crore in the first year itself.

As part of the plan, Air India signed four agreements with the SBI-led consortium late last evening. These were Master Restructuring Agreement, Working Capital Facility Agreement, Appointment of Facility Agent Agreement and Appointment of Trustee Agreement.

"The Cabinet approval for infusion of funds is still awaited and is expected to be received some time next week," the officials said. Implementation of the FRP would begin after the Cabinet approves additional equity infusion into the airline

One of the highlights of the pact is conversion of about Rs 10,500 crore of the airline's working capital into a long-term loan, carrying an annual interest of 11%. — PTI