Oct 20: National carrier Air India (AI) will look to borrow as much as Rs 1500 crore in short term loans. The move comes even as the Union government is mulling over divesting stake in the airline major that has managed to stay afloat with great difficulties over the past so many years.
This is the second time that the airline is moving towards a short-term loan in little over a month month. In September this year, AI had sought Rs 3,250 crore in short-term loans. The loan requirement follows its efforts to find funds to meet its working capital needs, said a report.
The airline has called upon banks to respond to its requirement with financial bids by October 26. Going by news reports, AII would be looking at a short term borrowing spread across three tranches. The company, according to the reports, would seek to borrow withing three working days after the acceptance letter to the successful bank is awarded.
It needs to be noted that the two loans amounting to Rs 4,750 crore would create more burden onn the already ailing company. The combined debt of Air India, according to reports quoting statistics, would come to around Rs 50,000 crore.
Meanwhile, the government is working on the modalities of the disinvestment process of the carrier. The Tata Group, which already operates Vistara airline, is keen on picking up Air India stake.