Wednesday, August 08, 2018

Air India tries to raise Rs 2,000 crore via equity, debt

New Delhi: The aviation ministry is making frantic attempts to raise Rs 2,000 crore for cash-strapped Air India through a mix of equity and credit. It is trying to negotiate a credit line for this amount, in addition to the Rs 1,000 crore guarantee given to the airline to revive a lapsed loan.

“The Rs 2,000 crore being tried for the airline is likely to come as borrowings. The options can be taking from small saving funds or it can be a mix of equity and borrowings. We are working out those details. A requirement of Rs 2,000 for AI has been submitted to the finance ministry,” said a senior aviation official.

Aviation secretary R N Choubey said the government will ensure that “AI will always fully provided for. There will not be a case of default or salary not being paid.” AI employees are yet to get the salary of last month. Incidentally, Jet Airways which is also facing a finial crunch paid July salaries to employees last month.
08/08/18 Saurabh Sinha/Times of India