To meet “urgent” working capital, disinvestment bound Air India has sought proposals for short-term loans worth Rs 1,500 crore. This is the second time within a month that the national airline seeks tenders for short tenure loans even as the government is working on the possibilities for the stake sale. Previously the airline had sought proposals for short-term loans about Rs 3,250 crore.
The flagship carrier of India is surviving on taxpayers’ money, which is battling multiple issues including financial woes and stiff competition.
In a document issued on October 18, Air India said that it is looking for a government guarantee backed Indian Rupee short-term loans totaling up to Rs 1,500 crore to meet its urgent working capital requirements. The loan would have a tenure up to June 27, 2018, from the date of being availed and the deadline could be extended.
As part of a turnaround plan approved by the previous UPA regime, Air India is to receive up to Rs 30,231 crore from the government subject to meeting certain performance thresholds. The 10-year bailout package began from 2012. The embattled carrier has received around Rs 26,000 crore under the package so far.
The Cabinet Committee on Economic Affairs (CCEA) is now working on the disinvestment modalities, including treatment of Air India’s unsustainable debt, hiving off of certain assets to a shell company, demerger and strategic disinvestment of three profit-making subsidiaries which has a debt burden of more than Rs 50,000 crore.
Post Your Comments