The funds be will allocated to cater daily air operations and losses and restore the fleet, pay aircraft rentals and overhauling IT systems, as per the report. The tenure of loan will three-year with an annual reset ranging between 7.5 and 8 per cent
The Tata group is in talks with banks to acquire working capital loans around Rs 15,000 crore for Air India. It purchased the airline from the government last year and is now making a valiant move to revive it, reported a media house.
The funds be will allocated to cater daily air operations and losses and restore the fleet, pay aircraft rentals and overhauling IT systems, as per the report.
The tenure of loan will three-year with an annual reset ranging between 7.5 and 8 per cent, informed an official.
In 2021, State Bank of India (SBI), HDFC Bank, and Bank of Baroda had provided a Rs 23,000 crore, unrated, unsecured loan to Talace which is a Tata Sons company. It then had won the bid for Air India, at a rate of 4.25 per cent. The same loan stands due for renewal, at January end.
As per a bank official, surge in interest rates and low cash in the system will hike borrowing costs. The Reserve Bank of India website has listed 6.91 per cent as the cut-off for 364-day Treasury Bills.
The acquisition of Air India was made by Tata Sons through Talace in October during last year for Rs 18,000 crore. For around 69 years after the government nationalised the airline in August 1953, the ownership of carrier came back with Tatas in January 2022.