- Air India has a debt burden of more than Rs 50,000 crore
- Air India strategic disinvestment got in-principle nod in June this year
- Airline plans to take short-term loans of up to Rs 3,250 crore
Under a turnaround plan approved by the previous UPA regime, Air India is to receive up to Rs 30,231 crore from the government subject to meeting certain performance thresholds. The 10-year bailout package began from 2012. So far, the embattled carrier has received around Rs 26,000 crore under the package.
Meanwhile, the national carrier plans to take short-term loans of up to Rs 3,250 crore to meet "urgent working capital requirements". The disinvestment-bound airline, which is staying afloat on taxpayers' funds, expects to get the central government's guarantee for the proposed borrowings shortly. The tenure of the loan will be one year and the amount is proposed to be drawn in two or three tranches.
Banks have been asked to submit their financial bids by September 19, indicating the amount of government-guaranteed short-term loans they are willing to offer.