Air India tenders for short term loan amid debts

     Written by : SMTV24x7 | Sat, Oct 21, 2017, 10:08 PM

Air India tenders for short term loan amid debts

Air India has sought proposal for short-term loans worth Rs 1500 crore to meet capital needs. This is the second time in a month the government-owned airline floated tenders for short tenure loans even as the government is working on the modalities for the stake sale.

The debt-ridden airline is facing a stiff competition and the top management is worries about the financial crunches. Currently, Air India is riding on the money of taxpayers. On October 18, Air India issued a document stating that it is looking for “government guarantee backed short-term loans totalling up to Rupees 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 with all the possibilities the deadline might be extended.

“The amount of rupees 1,500 crore will be drawn in one -three tranches. The Government of India guarantee is valid up to June 27, 2018 or till the date of disinvestment. Air India would like to draw the short-term loan within three working days after awarding the acceptance letter to the successful bank/s,” the document said.