Cash-strapped national carrier Air India is likely to raise ₹500 crore from banks by next week, as it looks for funds to meet working capital needs and service interest on outstanding loans, a senior Air India official said on Wednesday.
“We should be able to close the fund-raising by next week,” said the official on condition of anonymity.
The fund-raising initiative by Air India has the backing of a sovereign guarantee by the government. If the national carrier raises ₹500 crore in the coming week, it will exhaust the sovereign guarantee limit of ₹2,000 crore offered by the government to the loss-making airline for the year.
The airline had earlier this month floated a tender to raise ₹500 crore from domestic lenders by 31 October. The initial deadline for submission of bids was 10 October, which was later extended to 31 October. Read More