Chairman and Managing Director Ashwani Lohani
recently wrote to the government, highlighting the airline’s woes.
He had said if the Centre didn't infuse at least Rs 2,000 crore, the airline would be forced to shut down.
The official said a detailed analysis of the airline's privatisation plan would happen later with officials from the Department of Investment and Public Asset Management.
The prime minister also took stock of the increase in the number of operational airports. As part of the infrastructure push planned by the NITI Aayog, the government has planned to open 100 new airports in the next four years.
"Budgetary resources required for the regional connectivity plan were analysed and PMO officials were told that budgetary allocation for UDAN needed to be increased as every month at least three new airports were being opened up," the official said.
A second round of meeting is likely to take place soon as all the ministries could not make a presentation on Saturday.
Usually the Council of Ministers meets after the Cabinet meeting every month. But this time, the meeting is being held independently. The regular weekly Cabinet meeting will be held on December 24, sources said.