Friday, January 04, 2019

Air India Got Rs 2,000-Crore Loans from National Small Savings Fund In 2018

Air India received two loans worth Rs 2,000 crore from the National Small Savings Fund in 2018.

The national carrier borrowed Rs 1,000 crore each—for six months in October and for four-and-a-half months in November—at an interest rate of 8.5 percent a year, according to the airline’s response to BloombergQuint’s Right to Information queries.

The airline, saddled with more than Rs 54,000-crore debt, is on a government bailout.

Last month, the government sought Parliament’s approval for an equity infusion of Rs 2,345 crore in the airline under its turnaround plan, ruling out an immediate revival of its plan to sell the ailing carrier.

Air India, according to budget documents, will receive a total of Rs 3,000 crore in the financial year ending March 2019 from the NSSF—a pool of household investments in state-backed small savings schemes.
04/01/19 Nikunj Ohri/Bloomberg Quint