Air India Borrows Rs 2100 Crore Loan From Central Govt
Government-run Air India has accumulated losses amounting to Rs. 46,805 crore.
National carrier Air India will avail a loan of Rs 2100 crore from the central government, in the form of guaranteed borrowing, Civil Aviation Secretary RN Chaubey told news agency ANI.
In a guaranteed loan, party other than the borrower is responsible if the borrower defaults.
Government-run Air India has accumulated losses amounting to Rs 46,805 crore, reported NDTV.
As on 31 March 2017, the airlines has debt worth over Rs 49,000 crore to its name.
Earlier in May this year, Chaubey had said that the option of selling Air India would not be available if the “bidding amount ascertained was inadequate”.
However, in June 2018, the government shelved its plan to sell its 76 percent stake in the airline, following its failure to attract interest from bidders.
In July, the secretary said that the government will pursue the disinvestment plan once the “conditions become favourable.”
With 27,000 employees, Air India sought a short-term loan of Rs 1,000 crore to meet its day-to-day needs, reported NDTV.
(With inputs from ANI, NDTV)
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