These recommendations of the GoM, headed by Finance Minister Pranab Mukherjee, would be taken up for approval by the Union Cabinet and the Cabinet Committee on Economic Affairs respectively soon, Civil Aviation Minister Ajit Singh told reporters after the 90-minute meeting here.

The meeting was also apprised of the recent decision to allow foreign airlines pick up 49 per cent stake in Indian carriers. A note on the issue would be prepared soon for the Union Cabinet to give its nod, he said.

On Air India, the GoM recommended, among other steps,issuance of bonds with sovereign guarantee worth Rs 7,400 crore, Singh said.

The bond is likely to carry a coupon rate of 8.5-9 per cent and financial institutions may subscribe to these bonds, official sources said, adding this would be part of the national carrier's financial restructuring plan which was also approved by the GoM today.

"First thing is that on Air India's financial restructuring GoM has taken a view. Bonds will be issued, but this will have to go to the Cabinet. Bonds, and there are other ways," the Minister said, adding that about Rs 7,400 crore would be raised through these means.