Friday, December 08, 2017

Air India seeking ₹1,500 cr in working capital loans

Mumbai: Debt-laden Air India is looking at raising short-term loans to the tune of ₹1,500 crore to meet the urgent working capital requirements.

This is the third time since September that the disinvestment-bound national carrier is seeking bridge loan. In September, it had mopped up ₹3,250 crore and in October ₹1,500 crore.

Air India has already secured a government-guarantee for the proposed loan, which it is seeking from December through January.

“Air India is looking for government-guarantee backed short-term loans, totalling ₹1,500 crore to meet urgent working capital requirements,” according to the bid document.

Interested banks have to submit their bids by December 12, indicating the amount of loans they are willing to offer. The tenure of the loan will be up to June 2018 and could be extended.

Air India was promised ₹50,000 crore in equity infusion until 2032 by the erstwhile UPA dispensation in 2012 to bail out the airline burdened with accumulated losses and debt to the tune of over ₹52,000 crore.
08/12/16 PTI/The Hindu