India’s national carrier has fallen on bad days and even needs money to buy spare parts. Loss-laden Air India wants the government to allow it to raise $300 million through external commercial borrowing (ECB) to pare its high-cost rupee loan and procure spare parts.
It has sought additional guarantee from the government for the loan even as its earlier request to borrow $690 million from overseas is pending with the finance ministry.
“RBI allows the airline sector to raise up to $1billion through ECB. We wanted to avail this facility and had accordingly made our request. The approval for it is yet to come,” an official said requesting anonymity.
The ECB ceiling for the civil aviation sector is set at $1 billion with an individual airline allowed to raise a maximum of $300 million.
25/03/15 Nirbhay Kumar/mydigitalfc
It has sought additional guarantee from the government for the loan even as its earlier request to borrow $690 million from overseas is pending with the finance ministry.
“RBI allows the airline sector to raise up to $1billion through ECB. We wanted to avail this facility and had accordingly made our request. The approval for it is yet to come,” an official said requesting anonymity.
The ECB ceiling for the civil aviation sector is set at $1 billion with an individual airline allowed to raise a maximum of $300 million.
25/03/15 Nirbhay Kumar/mydigitalfc
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