Now, Air India looks for Rs 1,500 crore short term loans
New Delhi: Disinvestment-bound Air India has sought proposals for brief time period loans value Rs 1,500 crore to fulfill “pressing” working capital wants, in accordance with a doc.
That is the second time in little over a month that the flagship service has floated tenders for brief tenure loans at the same time as the federal government is engaged on the modalities for the stake sale.
The debt-laden service, which is surviving on taxpayers’ cash, is battling a number of headwinds, together with monetary woes and stiff competitors.
In a doc issued on October 18, Air India mentioned it’s in search of “authorities assure backed Indian Rupee quick time period loans totalling as much as Rs 1,500 crore to fulfill its pressing working capital necessities”.
The mortgage would have a tenure as much as June 27, 2018 from the date of being availed and the deadline may very well be prolonged.
“The quantity of Rs 1,500 crore will likely be drawn in a single -three tranches… The Authorities of India assure, is legitimate as much as June 27, 2018 or until the date of disinvestment,” the doc mentioned.
With regard to the mortgage, the service has requested banks to submit their monetary bids together with the quantity they’re keen to offer by October 26.
“Air India wish to draw the quick time period mortgage inside three working days after awarding the acceptance letter to the profitable financial institution/s,” the doc mentioned.
Final month additionally, the airline had sought proposals for short-term loans of as much as Rs three,250 crore to fulfill pressing working capital necessities.
It couldn’t be instantly ascertained whether or not the airline obtained sufficient response for the doc floated final month.
As a part of a turnaround plan authorised by the earlier UPA regime, Air India is to obtain as much as Rs 30,231 crore from the federal government topic to assembly sure efficiency thresholds. The 10-year bailout bundle started from 2012.
The embattled service has obtained round Rs 26,000 crore below the bundle thus far.
In June this yr, the Cupboard Committee on Financial Affairs (CCEA) gave its in-principle nod to the strategic disinvestment of the airline — which has a debt burden of greater than Rs 50,000 crore.
A ministerial group is now engaged on the disinvestment modalities, together with therapy of Air India’s unsustainable debt, hiving off of sure property to a shell firm, demerger and strategic disinvestment of three profit-making subsidiaries.