Banks are refusing to lend state-owned National Aviation Company of India Limited (Nacil), which is going through a tough phase with mounting losses and increasing working capital need. The company's financial need this year is likely to exceed beyond the board's sanctioned limit of Rs. 13,550 crore, which is 42 percent higher than last year.
Civil Aviation Secretary M Madhavan Nambiar has urged the government to come with measures to improve credit rating of the company and encourage lending agencies. A bail out plan with a Rs 2,750 crore soft loan and a Rs 1,231 crore equity infusion from the government has been proposed in this regard. Nacil has posted a loss of Rs 2,226 crore during 2007-08, which is over 50 percent of the total loss suffered by the aviation industry during the same period. | 
