Mumbai: National carrier Air India Ltd plans to raise up to ₹700 crore through a short-term loan (STL) from domestic lenders by 15 March, the airline said in a tender document on Monday.The loan will carry a sovereign guarantee, and lenders have to submit their bids by 2 March, it added.
Proceeds of the loan will be utilized for working capital expenses and to repay a portion of its dues to its vendors, including oil marketing companies, said an Air India official, requesting anonymity.
In January, the government invited offers from investors to acquire Air India Ltd, after a costly turnaround plan and a previous effort to sell a controlling stake in the national carrier failed.
Air India’s total debt is about ₹60,000 crore. To sweeten the deal, the government also reduced the debt on the company’s books to about ₹23,287 crore, which gives certainty to investors about the liabilities. However, Air India, which has been facing working capital shortage, owes dues to various vendors including OMCs. The carrier owes over ₹4,000 crores to various fuel retailers. Air India has also been delaying payment of salaries to its staff for the past few months.
