National carrier Air India plans to take short-term loans of up to Rs 3,250 crore to meet ‘urgent working capital requirements’, according to a document. The disinvestment-bound airline, which is staying afloat on taxpayers’ funds, expects to get the Central Government’s guarantee for the proposed borrowings shortly.
As part of efforts to revive the loss-making Air India, a ministerial panel is working on the modalities for strategic disinvestment of the carrier and its five subsidiaries. Against this backdrop, the airline seeking short-term loans assumes significance as it implies possible funds crunch. In a tender document issued today, the carrier said it is “looking for Government guarantee backed INR short-term loans totalling up to Rs 3,250 crore in the first phase to meet its urgent working capital requirements by September 25, 2017”.