India's Civil Aviation Minister announced on Wednesday that the Indian government may approve millions of dollars in financial aid for the ailing national carrier Air India.

[Praful Patel, India’s Civil Aviation Minister]:
"Well, that 800 crore rupees (eight billion) we are moving (to the) cabinet, we have already... the note has been circulated, I think, by next week. Cabinet approval for 800 crore will come."

A group of government officials met on Wednesday to discuss the financial aid and turnaround plans for Air India.

Another meeting will take place in the near future so that targets can be set.

[Praful Patel, India’s Civil Aviation Minister]:
"Targets have already been suggested. See, there was a suggestion to reduce cost by about close to 2,000 crore rupees (20 billion) by March. But I do not see that kind of cost reduction coming by March. So, as a result of which, there are certain issues which need to be addressed and as I said, we have to give certain more details, and I am sure Group of Ministers will take a decision after that."

The government will look into Air India’s financial books and its effort in cutting costs.

The carrier was earlier asked to bring down losses before it got its first cash infusion.

But cash-strapped Air India continues to lose money.

Air India, which was merged with state-run Indian Airlines in August 2007, holds about 18 percent of India's domestic passenger market.