Aviation

Air India to go to Modi with lifeline proposal

DELHI

State-owned Air India is likely to seek permission from the new government of Prime Minister Narendra Modi to raise Rs 10,000 crore through an issue of tax-free bonds in the current financial year.

The airline is additionally seeking immediate cash infusion of Rs 3,000 crore to repay loans it had taken last year to clear dues to vendors, in the event of a shortfall in the equity infusion earlier promised by the government.

Both are likely to be part of the presentation to be made to the PM this week by the ministry of civil aviation (MoCA). A senior AI executive said, “We are looking at raising Rs 10,000 crore through the bond issue to settle our working capital debt. We had made a request earlier but had at the time not got approval from the government. We are also seeking cash infusion of Rs 3,000 crore to repay loans we had raised last year due to shortfall in infusion of promised equity capital.”

Full report here Business Standard

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