GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Air India Receives Rs 1,000 Crore from National Small Savings Fund

The fresh funds are in addition to the Rs 980 crore received towards equity infusion by way of supplementary grants from the central government in September.

PTI

Updated:October 18, 2018, 11:17 PM IST
facebookTwittergoogleskypewhatsapp
Air India Receives Rs 1,000 Crore from National Small Savings Fund
Representative image. (Reuters)
Loading...
Mumbai: Cash-strapped Air India has raised Rs 1,000 crore from the National Small Savings Fund and expects to mop up Rs 500 crore through short-term borrowings next week, an airline source said on Thursday.

The ailing national carrier would be utilising the funds to mainly meet its working capital requirements.

The fresh funds are in addition to the Rs 980 crore received towards equity infusion by way of supplementary grants from the central government in September.

"We have received Rs 1,000 crore by way of loan from the National Small Savings Fund last week. This loan has been availed at a lower interest rate. However, we have to repay the the loan amount by March next year," the official said.

In early September, the carrier sought bids for garnering Rs 500 crore through short-term borrowings to meet its working capital requirements. The carrier had fixed September 10 as the deadline for submission of bids.

However, the deadline was extended the date to October 31 after it failed to get any response.

"We are hopeful of raising another Rs 500 crore when we open the bids next week," the source said.

Air India, which is sitting on a debt pile of over Rs 50,000 crore, has been struggling to raise money since last year. The airline had also defaulted on salaries besides delay in payments to oil companies, engine makers and aircraft lessors.

In June also, Air India borrowed short-term loans worth Rs 1,000 crore to pay staff salaries and meet other obligations, following a failed privatisation attempt.

The airline raised Rs 6,250 crore from various banks between September and March last fiscal.

The carrier is staying afloat on a bailout package extended by the government in 2012, as part of a turnaround plan and a financial restructuring plan.

Air India is to receive a budgetary support of Rs 30,231 crore over a 10-year period ending March 2021.
| Edited by: Padmaja Venkataraman
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Jet Airways 346.50 7.98
Yes Bank 191.00 -7.21
Reliance 1,127.40 2.79
ICICI Bank 367.55 -0.66
Indiabulls Hsg 766.20 -4.80
Company Price Change %Gain
Jet Airways 346.85 8.07
Mindtree 838.20 -0.05
Yes Bank 191.30 -7.14
HDFC 1,887.55 1.91
Info Edge 1,370.00 -0.48
Top Gainers
Company Price Change %Gain
Bharti Airtel 332.75 9.31
HCL Tech 1,022.20 3.38
Eicher Motors 24,735.00 3.30
Grasim 831.90 2.87
Reliance 1,127.40 2.79
Company Price Change %Gain
Bharti Airtel 333.60 9.81
Reliance 1,127.50 2.79
HDFC 1,887.55 1.91
SBI 290.30 1.75
Hero Motocorp 2,954.55 1.28
Top Losers
Company Price Change %Gain
Yes Bank 191.00 -7.21
Indiabulls Hsg 766.20 -4.80
JSW Steel 335.10 -2.76
Tata Steel 574.10 -2.59
IOC 143.35 -2.25
Company Price Change %Gain
Yes Bank 191.30 -7.14
Tata Steel 574.10 -2.47
Maruti Suzuki 7,332.05 -2.02
ONGC 156.55 -1.48
Axis Bank 618.30 -1.17

Live TV

Loading...
Loading...