New Delhi, Nov 12: In a bid to meet urgent working capital needs, National carrier Air India has received a loan worth of Rs 1,500 crore from Bank of India, an airline source said on Sunday.
For the second time in past few months, the disinvestment-bound airline has received loans from a public-sector lender.
Earlier, Debt-laden Airline had borrowed around Rs 3,250 crore for the short-tenure loans from two lenders—IndusInd Bank and Punjab National Bank.
According to the source, the airline has received Rs 1,500 crore loan from Bank of India after the tender for the amount was floated last month in order to meet “urgent” working capital needs, news agency PTI reported.
The state run- carrier has been making efforts to reduce debt burden of over Rs 50,000 crore. However, the central government is planning to finalise the contours of its strategic disinvestment as the airline is surviving on taxpayers’ money under the bailout package extended by the previous United Progressive Alliance government in 2012.
As part of the turnaround plan, the national carrier is about to borrow Rs 30,231 crore from the centre over a ten-year period as a subject to meeting certain performance thresholds.