New Delhi: Debt-laden Air India has received a loan worth of Rs1,500 crore from Bank of India to meet urgent working capital needs less than a month after floating a tender in this regard, an airline source said.
Earlier in October, Air India put out a requirement for government guarantee-backed Rs 1,500 crore short-term loans to meet urgent working capital requirements. The company then said that tenure of the loan will be one year and the amount proposed will be drawn in two or three tranches.
The loan was required as part of efforts to revive the ailing carrier, which has a debt burden of more than Rs 50,000 crore.
The disinvestment-bound national airline is facing some serious headwinds with only IndiGo showing interest in buying the international business of the carrier that has huge debt in its book and also roadblocks in selling non-core assets.
As part of the turnaround plan, the national carrier is to receive up to Rs30,231 crore from the government over a ten-year period subject to meeting certain performance thresholds. The Air India group flies to 44 overseas and 75 domestic destinations.
There are flights to Copenhagen, Tokyo, Washington, Stockholm, Sydney, Hong Kong, Kabul, Colombo, Seoul, Singapore and London, among other foreign cities.