New Delhi: National carrier Indian Airlines is to get a grant of Rs 124 crore to clear the liabilities of Vayudoot Ltd on a one-time settlement basis.

"The Civil Aviation Ministry's proposal for grant to the airlines to pay off the outstanding dues of Vayudoot has been approved," Finance Minister P Chidambaram told reporters after a meeting of the Cabinet Committee on Economic Affairs.

He said the Indian Airlines will be given a one-time grant of Rs 124 crore to enable Vayudoot (which merged with IA) to pay off its outstanding to the various creditors.