New Delhi: The civil aviation ministry has sought approval of the finance ministry to increase the $300-million cap for raising of foreign funds for working capital requirements by individual airline companies.
This follows a request from Jet Airways. It wishes to raise more funds for this need through external commercial borrowing (ECB), government sources said.
These are commercial loans taken by companies from non-resident lenders. The cap for a scheduled airline is $300 mn and the aviation sector as a whole can raise a maximum of $1 billion, according to Reserve Bank of India (RBI) guidelines.
Jet already has $300 mn of ECB. "We do not wish to comment on this issue," a spokesperson said in response to an e-mailed questionnaire. Airlines avail of this facility because of the interest rate difference between domestic loans and debt taken from abroad.
13/04/15 Somesh Jha/Business Standard
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This follows a request from Jet Airways. It wishes to raise more funds for this need through external commercial borrowing (ECB), government sources said.
These are commercial loans taken by companies from non-resident lenders. The cap for a scheduled airline is $300 mn and the aviation sector as a whole can raise a maximum of $1 billion, according to Reserve Bank of India (RBI) guidelines.
Jet already has $300 mn of ECB. "We do not wish to comment on this issue," a spokesperson said in response to an e-mailed questionnaire. Airlines avail of this facility because of the interest rate difference between domestic loans and debt taken from abroad.
13/04/15 Somesh Jha/Business Standard
