NEW DELHI: With the government infusion reducing to Rs 2,500 crore
annually from this year, national carrier Air India is looking to raise
$300 million (over Rs 1,900 crore @ Rs 64 to a dollar) through External
commercial Borrowing.
"The money will be part of its working capital requirements," said a senior civil aviation ministry official, who did not want to be identified.
The official added that the government will provide guarantees for the issue by tomorrow.
The government, which has committed a bailout package of Rs 30,000 crore till 2020-21, will pay only Rs 2,500 crore as promised under the package.
Officials say that a substantial part of the government infusion for this year will be used to service aircraft loans, hence, the need to raise money through EB was felt.
Read news in full 22/07/15 Mihir Mishra/The Economic Times
"The money will be part of its working capital requirements," said a senior civil aviation ministry official, who did not want to be identified.
The official added that the government will provide guarantees for the issue by tomorrow.
The government, which has committed a bailout package of Rs 30,000 crore till 2020-21, will pay only Rs 2,500 crore as promised under the package.
Officials say that a substantial part of the government infusion for this year will be used to service aircraft loans, hence, the need to raise money through EB was felt.
Read news in full 22/07/15 Mihir Mishra/The Economic Times
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