Air India seeks to raise short term loans around Rs 1500 crore

Debt-ridden Air India sought to raise short term loans around Rs 1500 crore. The national carrier is looking for funds to meet the urgent working capital needs.

According to the report in the Economic Times, this is the third time since September that the disinvestment-bound national carrier is seeking bridge loan. In September, it had mopped up Rs 3,250 crore and in October Rs 1,500 crore.

The airlines had already got a government-guarantee for the proposed loan, which it would sought from December till January.

"Air India is looking for government-guarantee backed short-term loans, totalling Rs 1,500 crore to meet urgent working capital requirements," according to the bid document.

Potential bidders have to submit their bids by December 12, indicating the amount of loans they would be offering, the newspaper reported.

The tenure of loan would be June 2018 which probably could further extend.

Earlier this month, Civil aviation minister Ashok Gajapathi Raju said the government wants to make Air India vibrant for which plans on an 'alternative mechanism' was being worked out.

The national carrier, entirely funded by government, was making losses and was now in a debt trap due to interest burden.

"We want to make Air India a vibrant entity and not to go the Kingfisher way", Raju told reporters.

He said the government was working on an 'alternative mechanism' and all options were being explored.

Raju said "Air India's financials are bad. But we want it to continue to be in the skies".

The minister said private carrier Indigo had given expression of interest in Air India's overseas operations, while the Tatas were making only verbal enquiries. "There is nothing in writing from the Tatas, it is only verbal", he said.

Air India