New Delhi, Feb 3 (IANS) The Group of Ministers (GoM) on Aviation Wednesday sought clarification from national carrier Air India, which had incurred a loss of Rs.7,200 crore last fiscal, about its cost-cutting and revenue enhancements measures.

The carrier had earlier been asked to bring down losses before it got the first tranche of equity infusion from the government as a bail-out measure.

'The GoM has asked for some clarifications. We will meet again. There has been massive cost cutting by Air India,' Civil Aviation Minister Praful Patel told reporters after a meeting of the GoM.

'There were number of issues discussed,' he added.

The minister said the cabinet would be approached for approval of the Rs.800-crore equity infusion, a proposal that the GoM led by Finance Minister Pranab Mukherjee had cleared last November.

The ailing carrier was expected to get the first tranche of Rs.400 crore last month.

The equity infusion, once cleared by the cabinet, will cover part of the funds promised by the government to rescue the ailing national carrier.

The GoM had asked the carrier to cut costs by at least Rs.2,000 crore by the end of the current fiscal. Air India, however, has only managed to reduce it by Rs.150-180 crore till now.

Earlier, a committee headed by Cabinet Secretary K.M. Chandrasekhar had proposed a Rs.5,000-crore capital infusion over the next three years, on the condition that the airline cut costs and raise revenues.

Cash-strapped Air India continues to post losses with working capital debts at Rs.17,000 crore and losses of Rs.7,200 crore last fiscal.

The airline, which has been incurring losses since 2004-05, currently has 111 aircraft on order.