Thursday, August 23, 2018

Air India’s emergency lending: Finance ministry gets Rs 500 crore SOS

New Delhi | Mumbai: The national carrier is again headed towards serious financial turbulence, and North Block may have to help arrange an emergency landing.

Air India, ET has learnt, is on the brink of defaulting on bank loan repayments, and the aviation ministry has sought Rs 500 crore from the finance ministry on an urgent basis.

“A letter has been sent (to the finance ministry) to release the money in the interim so that payments can be made to banks,” said an official in the aviation ministry. Government, Air India and bank officials who spoke to ET for this story did so on the condition of anonymity.

The Rs 500 crore sought from North Block will be over and above the Rs 1,500 crore Air India is raising as a short-term loan from Bank of Baroda.

The short-term loan will be more or less exhausted in funding commitments other than bank loan repayments.
23/08/18 Mihir Mishra/Economic Times
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