Thursday, September 14, 2017

AI plans to take Rs 3,250 cr loans for 'urgent' capital needs

New Delhi: National carrier Air India plans to take short-term loans of up to Rs 3,250 crore to meet "urgent working capital requirements", according to a document.

The disinvestment-bound airline, which is staying afloat on taxpayers' funds, expects to get the central government's guarantee for the proposed borrowings shortly.

As part of efforts to revive the loss-making Air India, a ministerial panel is working on the modalities for strategic disinvestment of the carrier and its five subsidiaries.

Against this backdrop, the airline seeking short-term loans assumes significance as it implies possible funds crunch.

In a tender document issued today, the carrier said it is "looking for government guarantee backed INR short-term loans totalling up to Rs 3,250 crore in the first phase to meet its urgent working capital requirements by September 25, 2017".

The tenure of the loan will be one year and the amount is proposed to be drawn in two or three tranches.
13/09/17 Outlook

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